With a Natural Monopoly, the Fair-Return Price

question 129

Multiple Choice

With a natural monopoly, the fair-return price

• A) is allocatively efficient; the socially optimal price is allocatively inefficient.
• B) is allocatively inefficient; the socially optimal price is allocatively efficient.
• C) and the socially optimal price are both allocatively inefficient.
• D) and the socially optimal price are both allocatively efficient.

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Definitions:

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A formal statement or written declaration testifying to someone's character, qualifications, or the quality of a product or service.

Modest Persona

A representation or character that displays humility and does not seek excessive attention, often used in literary or theatrical contexts to depict virtue.

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The social behavior, norms, knowledge, beliefs, arts, laws, customs, and any other capabilities and habits acquired by people as members of a society.

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The process of setting up or conditioning a pond environment for a specific purpose, such as habitation by aquatic life.