If a Regulatory Commission Wants to Provide a Natural Monopoly

question 168

Multiple Choice

If a regulatory commission wants to provide a natural monopoly with a fair return, it should establish a price that is equal to

• A)minimum average fixed cost.
• B)average total cost.
• C)marginal cost.
• D)marginal revenue.

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Definitions:

Whole Life Insurance

A type of insurance policy with which, for a set annual premium, one receives life insurance coverage and, at the same time, invests one’s money.

Premiums

A designated amount of money paid at regular intervals by an individual or entity for a policy or service, especially in the context of insurance.

Medico-legal Deaths

Pertains to deaths that are investigated by legal authorities to determine the cause and manner, especially when they are unexpected, suspicious, or involve unexplained circumstances.

Autopsy

A pathologist’s medical examination of the organs of the dead body to determine the cause of death.