The Outcome of Regulating a Natural Monopoly Using the Marginal

question 89

Multiple Choice

The outcome of regulating a natural monopoly using the marginal cost pricing rule is

• A) that the firm makes a normal profit.
• B) that the firm maximizes its profit.
• C) that consumer surplus is less than what it would be if the firm maximized its profit.
• D) an efficient level of production.
• E) that the firm makes an economic profit.

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Definitions:

Compulsion

An irresistible urge to perform certain behaviors repeatedly, often as a way to reduce anxiety or distress.

Obsession

A persistent, intrusive, and unwanted thought that causes significant distress or anxiety.

Dissociative Disorders

A group of mental disorders characterized by an involuntary escape from reality involving a disconnection between thoughts, identity, consciousness, and memory.

Consciousness

Everything of which we are aware at any given time-our thoughts, feelings, sensations, and perceptions of the external environment.