The Government Will Have to Subsidize a Natural Monopoly in the Long

question 90

Multiple Choice

The government will have to subsidize a natural monopoly in the long run if regulators choose to pursue:

• A) marginal cost pricing
• B) fair-return pricing.
• C) per se pricing.
• D) any form of regulation.

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Definitions:

Violating

The action of violating or not adhering to a regulation, pact, or statute.

Rule Of Reason

A legal principle in antitrust law that evaluates the legality of business practices based on their overall impact on competition, rather than deeming them inherently unlawful.

Sherman Act

A landmark federal statute in U.S. antitrust law passed in 1890 which prohibits monopolistic practices and has been used to regulate competition among enterprises.

Reliable Guidance

Advice or instructions that are dependable and trustworthy, often based on expertise or authoritative sources.