If Average-Cost Pricing Is Imposed on a Falling-Cost Natural Monopoly,the

question 30

Multiple Choice

If average-cost pricing is imposed on a falling-cost natural monopoly,the result will be

• A)exit from the industry in the short run.
• B)zero economic profit.
• C)economic profits.
• D)economic losses.
• E)losses and exit from the industry in the long run.

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Definitions:

Endocrine System

A collection of glands that produce hormones which regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or outside the body.

Hormones

Chemical messengers produced by the glands in the endocrine system, affecting many different processes throughout the body.

Cerebellum

A major structure of the hindbrain crucial for motor control, coordination, precision, and timing of movements.