-If an Average Cost Pricing Rule Is Imposed on the Natural

question 300

Multiple Choice

-If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then the firm's economic profit will be

• A) $9 million.
• B) $12 million.
• C) $0, that is, the firm's owners make only a normal profit.
• D) negative, that is, the firm incurs an economic loss.

---

Definitions:

Sweatshops

Businesses that employ workers at very low wages for long hours in poor working conditions.

Executives

Senior-level employees responsible for making decisions and managing the operations within an organization.

Transnationals

Companies that operate on a global scale, transcending national boundaries in their business operations and strategic planning.

Culture Shock

A feeling of confusion, doubt, or nervousness arising from being placed in a new or significantly different cultural environment.