One Problem with Regulating a Monopolist on the Basis of Cost

question 88

Multiple Choice

One problem with regulating a monopolist on the basis of cost is that

• A)by focusing on costs, the regulators ignore profits.
• B)it does not provide an incentive for the monopolist to reduce its cost.
• C)a monopolist's costs, by definition, are higher than costs of perfectly competitive firms.
• D)a monopolist is still able to generate excessive economic profits.

---

Definitions:

Alternative Gene Variants

Different forms or versions of the same gene, resulting in variability within a population's genetic composition.

Genotype

Genotype refers to the genetic makeup of an organism; it is the set of genes that an organism carries.

Genetic Composition

Refers to the complete set of genes within an organism's genome, including all of its genetic material.

Genetic Variation

The diversity in gene frequencies within a population, which contributes to the population's ability to adapt to varying environments.