If a Regulatory Board Wanted to Make Sure That a Natural

question 8

Multiple Choice

If a regulatory board wanted to make sure that a natural monopoly earned a normal rate of return,it should set price which is equal to:

• A) marginal cost.
• B) average fixed cost.
• C) average variable cost.
• D) average total cost.

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Definitions:

Formal Ethics

The explicitly stated moral rules and principles that govern behaviors within an organization or society.

Ethical Misconduct

Behaviors or actions that go against moral principles and professional standards.

Personal Preference

An individual's inclination or liking for specific choices or options over others.

Social Consensus

The degree of agreement among members of a society or group on beliefs, behaviors, or values.