There Is a Deadweight Loss If a Natural Monopoly Is

question 72

Multiple Choice

There is a deadweight loss if a natural monopoly is regulated to use

• A) marginal cost pricing and if it is allowed to be unregulated and maximise its profit.
• B) marginal cost pricing and if it is regulated to use average cost pricing.
• C) average cost pricing and if it is allowed to be unregulated and maximise its profit.
• D) None of the above answers is correct.

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