An Argument for Making Regulated Monopolies Adopt Marginal-Cost Pricing Is

question 43

Multiple Choice

An argument for making regulated monopolies adopt marginal-cost pricing is that this would

• A) increase productive efficiency by making price equal average cost.
• B) benefit higher-income groups by making monopoly products more affordable.
• C) increase managerial incentives to reduce employment and production.
• D) make the marginal cost equal to society's valuation of the marginal benefit.

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Definitions:

Not Electrolytes

Substances that do not dissociate into ions in solution and therefore cannot conduct electricity in their molten or aqueous states.

Non-electrolytes

Substances that do not produce ions when dissolved in water, and hence do not conduct electricity in solution.

Non-electrolyte

A substance that does not readily ionize when dissolved or melted and is therefore a poor conductor of electricity.

Dissociate

In chemistry, it refers to the process by which molecules, ions, or complexes split into smaller particles or ions, often reversible and influenced by environmental conditions.