Average Cost Pricing Is Permitted

question 113

Multiple Choice

Average cost pricing is permitted

• A)when a service is produced by a natural monopoly.
• B)when few firms have the incentive to provide a service.
• C)in price-taking markets.
• D)when firms exhibit diseconomies of scale.

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Definitions:

Argument

A series of statements or reasons made to persuade others that an action or belief is right or wrong, usually concluding with a main assertion.

Independent Premises

Statements in an argument that do not rely on one another to support the conclusion.

Conclusion

The end or finish of an event, process, or text, often summarizing the arguments or results in a logical or analytical discourse.

Argument

A set of statements or reasons made to persuade others that an idea or opinion is correct or valid.