If a Regulatory Commission Imposes Upon a Nondiscriminating Natural Monopoly

question 149

Multiple Choice

If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below average total cost at the resulting output, then

• A)the firm will realize an economic profit.
• B)the firm will earn only a normal profit.
• C)allocative efficiency will be worsened.
• D)the firm must be subsidized or it will go bankrupt.

---

Definitions:

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to self-imposed starvation.

Cardiac Arrhythmias

Refers to irregular heartbeats that can range from harmless to life-threatening, characterized by abnormal electrical activity in the heart.

Amenorrhea

The absence of menstruation in a woman of reproductive age.

Metabolic Disturbances

Disorders that affect the body's metabolism, including how it processes and utilizes nutrients, which can impact energy production and overall health.