Which of the Following Statements Regarding an Average Cost Pricing

question 26

Multiple Choice

Which of the following statements regarding an average cost pricing rule for a natural monopoly is WRONG?

• A) The firm makes zero economic profit.
• B) More output is produced than if the firm maximised profit.
• C) It sets price equal to average total cost.
• D) It is efficient.

Identify key factors of production and their roles.

Describe the concept of comparative and absolute advantages in trade.

Understand the role of economists and economic institutions in policy making and analysis.

Comprehend the principles underlying the circular-flow diagram and market operations.

---

Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Unemployed Women

Women who are capable of working and willing to work, but are unable to find suitable employment.

Unemployed Men

Males who are currently without work but are available for and seeking employment.

Dependent Personality Disorder

A psychiatric condition characterized by an excessive need to be taken care of, leading to clingy and submissive behavior.