If a Natural Monopoly Regulatory Board Sets a Price Where

question 25

Multiple Choice

If a natural monopoly regulatory board sets a price where marginal cost is equal to demand

• A)the firm would earn monopoly profits.
• B)economic efficiency would not be achieved.
• C)the firm would incur a loss.
• D)the firm would break even.

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Definitions:

Extracellular Thirst

Thirst caused by a reduction in the volume of fluids found outside of the body cells, often due to blood loss or dehydration.

Intracellular Thirst

A type of thirst caused by the decrease in the volume of fluid inside cells, typically as a result of high salt intake or other factors affecting cellular water.

Physiological Needs

The basic, fundamental needs of humans necessary for survival, such as food, water, shelter, and sleep, as described by Maslow's hierarchy of needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by a hierarchy of needs starting from basic physiological needs to self-actualization.