In Regulating a Natural Monopoly, the Price Strategy That Ensures

question 239

Multiple Choice

In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price

• 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)corresponding to the demand curve where marginal revenue equals zero.

---

Definitions:

Retires

The act of leaving one's job and ceasing to work, typically because of age or health.

Retirement Savings Plan

a financial arrangement designed to allow individuals to accumulate funds for their retirement.

Compounded Monthly

This refers to the process of calculating interest on both the principal amount and accrued interest every month.

Contributions

Contributions or aids given to a collective pool or fund.