Gene's Car Wash Is a Natural Monopoly

question 269

Multiple Choice

Gene's Car Wash is a natural monopoly.To wash 100 cars a week,if Gene is unregulated,he would charge a price of $10.Gene's average total cost for washing 100 cars is $8,his average variable cost is $6,and his marginal cost is $4.If Gene is regulated using an average cost pricing rule,the price he is allowed to charge to wash 100 cars is

• A) $10.
• B) $8.
• C) $6.
• D) $4.
• E) $400.

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Definitions:

Fetal Pulmonary Trunk

A major vessel in the developing fetus that carries blood from the heart to the lungs for oxygenation.

Fetal Aorta

The main artery in the fetus that carries blood from the heart to various parts of the body.

Costocervical Artery

An artery that supplies blood to the upper back, neck, and upper ribs.

Intercostal Artery

A group of arteries that run between the ribs, supplying blood to the chest wall and nearby muscles.