Economic Efficiency Requires That a Natural Monopoly's Price Be

question 230

Multiple Choice

Economic efficiency requires that a natural monopoly's price be

• A)equal to average total cost where it intersects the demand curve.
• B)equal to marginal cost where it intersects the demand curve.
• C)equal to average variable cost where it intersects the demand curve.
• D)equal to the lowest price the firm can charge and still make a normal profit.

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