An Argument for Making Regulated Monopolies Adopt Marginal-Cost Pricing Is

question 159

Multiple Choice

An argument for making regulated monopolies adopt marginal-cost pricing is that this would

• A)increase productive efficiency by making price equal average cost.
• B)benefit higher-income groups by making monopoly products more affordable.
• C)increase managerial incentives to reduce employment and production.
• D)make the marginal cost equal to society's valuation of the marginal benefit.

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