Under a Marginal Cost Pricing Rule,a Regulated Natural Monopoly

question 64

Multiple Choice

Under a marginal cost pricing rule,a regulated natural monopoly

• A)makes an economic profit and a deadweight loss arises.
• B)makes an economic profit with no deadweight loss.
• C)incurs an economic loss with no deadweight loss.
• D)incurs an economic loss and a deadweight loss arises.
• E)breaks even.

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Definitions:

Services

Intangible products offered by businesses, such as consulting, repairs, or entertainment.

3-way Match

An accounting control process matching the purchase order, delivery note/packing slip, and invoice before making a payment to the supplier.

Internal Control

Processes and procedures put in place by a company to ensure the integrity of financial and accounting information, enhance accountability, and prevent fraud.

Sales Tax Payments

Payments made to local, state, or federal tax authorities for sales tax collected from customers on taxable sales.