-When Regulators Require That a Natural Monopoly Sets Price Equal

question 32

Multiple Choice

-When regulators require that a natural monopoly sets price equal to average total cost:

• A)it is said to be allowing a fair rate of return.
• B)the firm earns a super normal profit.
• C)the firm shuts down permanently.
• D)the firm operates at the profit-maximizing level of output.
• E)the firm shuts down temporarily.

---

Definitions:

Rating Scale

A rating scale is a tool for assessing the magnitude or degree of a particular trait, behavior, or characteristic, typically through a numbered or graduated series.

Series Of Statements

A sequence or set of remarks, facts, or allegations presented in a logical order.

Event Sampling

A research method where the researcher records all occurrences of a specific event within a set period.

Time Sampling

A form of observation in which behaviors are noted during a set duration of time.