In Average Cost Pricing, the Natural Monopoly Would Have to Set

question 117

Multiple Choice

In average cost pricing, the natural monopoly would have to set price equal to

• A) AFC.
• B) AVC.
• C) ATC.
• D) MC.

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Definitions:

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Consolidation

The joining of two corporations.

Securities

Financial instruments that signify ownership in a public company (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Fractional Interest

Ownership in a part or fraction of an asset, where the ownership is shared among multiple parties.