-The Figure Above Provides Information About Light-U-Up Utilities, Which Is

question 263

Multiple Choice

-The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is regulated and must follow an average cost pricing rule, it will produce ________ and sell at a price of ________.

• A) 200 kwh; 30¢ per kwh
• B) 200 kwh; 25¢ per kwh
• C) 300 kwh; 20¢ per kwh
• D) 400 kwh; 15¢ per kwh