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:

American Participants

A term often used in research studies indicating the individuals taking part in the study are from the United States.

Social Cues

Nonverbal or environmental signals that are interpreted by individuals to guide their social interactions.

Ultimate Attribution Error

Tendency to attribute bad outgroup and good ingroup behaviour internally, and to attribute good outgroup and bad ingroup behaviour externally.

Scapegoating

The practice of unfairly blaming an individual or group for problems or negative outcomes, often to divert attention from the real causes.