The Outcome of Regulating a Natural Monopoly Using the Marginal

question 89

Multiple Choice

The outcome of regulating a natural monopoly using the marginal cost pricing rule is

• A) that the firm makes a normal profit.
• B) that the firm maximizes its profit.
• C) that consumer surplus is less than what it would be if the firm maximized its profit.
• D) an efficient level of production.
• E) that the firm makes an economic profit.

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Definitions:

Body Temperature

The measure of the body's ability to generate and get rid of heat, crucial for maintaining metabolic processes.

Decreases

A reduction in size, quantity, or degree of something.

Increases

Refers to a process or action resulting in a greater amount, number, or degree of something.

Constant

A situation or value that does not change or vary, often used in the context of scientific experiments or mathematical equations.