An Average Cost Pricing Rule Sets ________ Equal to Average

question 91

Multiple Choice

An average cost pricing rule sets ________ equal to average total cost.An average cost pricing rule is not an efficient way of regulating monopoly because at the quantity produced,________.

• A)price;marginal benefit exceeds marginal cost
• B)the return on capital;marginal benefit exceeds marginal cost
• C)marginal cost;marginal cost exceeds marginal benefit
• D)price equal to marginal revenue,which in long-run equilibrium is;marginal cost exceeds marginal benefit
• E)marginal cost;marginal benefit exceeds marginal cost

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Definitions:

Holding Period

The duration for which an investment is held by an investor before being sold.

Risky Assets

Assets with a high degree of uncertainty regarding their returns, with the potential for both high losses and high returns.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature at par.

Historical Returns

The past financial performance of an investment, often presented as an average annual return rate over a specific time period.