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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Definitions:

Morphemes

Tiny grammatical elements within a language that bear significance.

Phonemes

Fundamental sound units within a language that help to distinguish different words.

Linguistic Heuristics

Cognitive shortcuts or rules of thumb used in language understanding and decision-making, relying on language patterns rather than systematic analysis.

Morphemes

The smallest grammatical units in a language that have semantic meaning.