A Likely Consequence Over Time of an Average-Cost Pricing Policy

question 154

Multiple Choice

A likely consequence over time of an average-cost pricing policy for a natural monopoly is

• A) an increase in the average cost curve.
• B) an increase in profits.
• C) no change in price.
• D) a decrease in the average cost curve.

---

Definitions:

Modality Principle

A guideline in multimedia learning suggesting that people learn better when information is presented in both verbal and visual formats rather than in verbal format alone.

Multimedia Principle

The concept that people learn more effectively from words and pictures than from words alone.

Customization Principle

The concept that training and educational content should be tailored to meet the specific needs and preferences of the learner.

Computer-based Training

An educational or training process facilitated by the use of computers and software programs to provide interactive instruction in various subjects.