Regulators Employ Average Cost Pricing Instead of Marginal Cost Pricing

question 192

Multiple Choice

Regulators employ average cost pricing instead of marginal cost pricing because

• A) average cost pricing is more efficient than marginal cost pricing.
• B) price must be high enough to cover all opportunity costs if the firm is to stay in business.
• C) the price is lower with average cost pricing.
• D) average cost pricing is simpler to compute than marginal cost pricing.

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Definitions:

Testosterone

A steroid hormone primarily secreted in males by the testes and is responsible for the development of male secondary sexual characteristics.

Seminiferous Tubules

Narrow, coiled tubules within the testes where sperm production occurs.

Glans Clitoris

The external portion of the clitoris, a sensitive erogenous organ located at the anterior part of the vulva in females.

Homologous

Structures or molecules in different species that are similar because of common ancestry.