Which of the Following Is True When Regulators Require a Natural

question 47

Multiple Choice

Which of the following is true when regulators require a natural monopolist to set price equal to marginal cost?

• A)This policy results in a less-than-socially-optimal allocation of resources.
• B)The marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit.
• C)The monopolist experiences recurring losses unless a subsidy is provided.
• D)The monopolist earns a normal profit.
• E)The monopolist earns an economic profit.

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Definitions:

Institutionalized

The incorporation of a practice, organization, or activity into a structured and widely accepted system within society.

Resource Mobilization

Resource Mobilization is a process that involves gathering and deploying both financial and non-financial resources to achieve specific objectives, frequently used in the context of social movements and nonprofit organizations.

Frame Alignment

A process in social movements that involves making individual participants' interests, values, and beliefs congruent with the goals and activities of the movement.

Resource Opportunism

The practice of exploiting circumstances and opportunities with minimal regard for principles or consequences in order to gain access to resources.