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:

Integrative Approach

A strategy that combines elements from various sources or disciplines to solve problems or create new ideas.

Leadership Construct

An abstract idea or theory formulated to understand the elements, qualities, and dynamics of leadership.

Behavior Approach

A method in psychology and management focusing on observable behaviors and the external stimuli that influence them, as opposed to internal thought processes.

Managers

Individuals responsible for planning, directing, and overseeing the operations and employees within an organization.