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

---

Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Debt/Interest Planning

The process of managing a company's or individual's debt load and the associated interest expenses, often to reduce costs or optimize tax implications.

Forecast Interest

The predicted amount of interest expenses or income, often used in financial planning and budgeting to estimate future financial performance.

Planned Debt

Borrowing that is anticipated and strategically used for business operations, expansion, or other purposes.