Regulators Employ Average Cost Pricing Instead of Marginal Cost Pricing

question 192

Multiple Choice

Regulators employ average cost pricing instead of marginal cost pricing because

• A) average cost pricing is more efficient than marginal cost pricing.
• B) price must be high enough to cover all opportunity costs if the firm is to stay in business.
• C) the price is lower with average cost pricing.
• D) average cost pricing is simpler to compute than marginal cost pricing.

---

Definitions:

Entrepreneurial Idea

An innovative concept or solution that can be transformed into a viable business opportunity.

Implementation Stage

The phase in a project or strategy when the planned actions are executed or put into operation.

Capital/Money

Financial assets or their financial value used to fund operations and investments in a business.

Entrepreneurship Stage

Describes a phase in the lifecycle of a new business venture, ranging from the idea conception to establishing the business and its eventual growth or closure.