Which of the Following Is True When Regulators Require a Natural

question 35

Multiple Choice

Which of the following is true when regulators require a natural monopolistto set price equal to marginal cost?

• A)This policy results in a less than socially optimal allocation of resources.
• B)The marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last
• Unit.
• C)The monopolist will face recurring losses unless a subsidy is provided.
• D)The monopolist will earn a normal profit.
• E)The monopolist will earn more than a fair return.

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Definitions:

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder affecting both children and adults characterized by symptoms of inattention, hyperactivity, and impulsivity.

Comorbid

The coexistence of two or more disorders or diseases in the same individual, often complicating diagnosis, treatment, and prognosis.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by a persistent pattern of inattention and/or hyperactivity-impulsivity.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other types of substance use disorders.