If a Regulatory Board Wanted to Make Sure That a Natural

question 62

Multiple Choice

If a regulatory board wanted to make sure that a natural monopoly chose a price resulting in the efficient level of output,it should set a price equal to:

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

---

Definitions:

Capsule

A protective layer, typically polysaccharide or protein, surrounding the cell walls of some bacteria and fungi.

Haploid Spores

Reproductive cells produced by some plants, fungi, and protists that have only one set of chromosomes and can develop into a new organism without needing to fuse with another cell.

Organic Material

Matter composed of organic compounds that has come from the remains of organisms such as plants and animals and their waste products in the environment.

Soil Erosion

The wearing away or removal of soil from the land; although soil erosion occurs naturally from precipitation and runoff, human activities (such as clearing the land) accelerate it.