If Regulators Impose Marginal-Cost Pricing on a Natural Monopolist, the Government

question 96

Multiple Choice

If regulators impose marginal-cost pricing on a natural monopolist, the government may have to:

• A)nationalise the monopolist
• B)require transparent pricing
• C)subsidise the monopolist
• D)tax the final product

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Definitions:

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments.

Net Cash

The amount of cash that is available after all debts, expenses, and other financial obligations have been paid, indicating liquidity.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, generally reflected in the cash flow statement as part of a company's financial activities.

Net Cash

The amount of cash available after accounting for cash inflows and outflows in a given period.