If a Public Service Commission Requires a Natural Monopoly to Set

question 262

Multiple Choice

If a public service commission requires a natural monopoly to set its price equal to the long-run marginal cost, this will result in

• A) excessive economic profits to the monopoly.
• B) normal economic profits to the monopoly.
• C) losses to the monopoly.
• D) either economic profits or losses, depending on the efficiency of the monopoly.

---

Definitions:

Political Community

A group of people bound together by shared values, governance structures, and political interests.

Expanding Political Participation

The broadening of the opportunity and capacity for individuals and groups to engage in the political process, including voting, campaigning, and holding public office.

Greater Liberties

A term that may refer to expanded freedoms and rights for individuals or groups, often within the context of a society or political system.

Old Northwest

A historical term referring to the territory northwest of the Ohio River and east of the Mississippi, which was crucial in early American expansion and settlement.