An Argument for Making Regulated Monopolies Adopt Marginal-Cost Pricing Is

question 43

Multiple Choice

An argument for making regulated monopolies adopt marginal-cost pricing is that this would

• A) increase productive efficiency by making price equal average cost.
• B) benefit higher-income groups by making monopoly products more affordable.
• C) increase managerial incentives to reduce employment and production.
• D) make the marginal cost equal to society's valuation of the marginal benefit.

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Definitions:

Congruent

In agreement or harmony; often used in mathematics to refer to figures that are identical in shape and size.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

National Industrial Recovery Act

A 1933 U.S. legislation aimed at economic recovery during the Great Depression, which sought to stimulate industrial production and improve labor conditions.

National Industrial Recovery Act

A law enacted in 1933 as part of the New Deal to stimulate economic recovery by regulating industry, promoting fair wages and working hours, and encouraging collective bargaining for workers.