-Refer to the Above Figure

question 92

Multiple Choice

-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to

• A) marginal cost, which is .
• B) marginal cost, which is .
• C) average cost, which is .
• D) average cost, which is .

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household over a specified period, including wages, salaries, benefits, and other income sources.

Optimal Choices

Decisions that result in the best possible outcome, given any constraints or limitations faced.

Conditions Of Scarcity

A situation where the demand for a resource significantly exceeds its available supply, leading to allocation challenges.

Economics

The social science that studies how goods and services are produced, distributed, and consumed, and how individuals, businesses, and governments make choices given limited resources.