If a Public Service Commission Requires a Natural Monopoly to Set

question 262

Multiple Choice

If a public service commission requires a natural monopoly to set its price equal to the long-run marginal cost, this will result in

• A) excessive economic profits to the monopoly.
• B) normal economic profits to the monopoly.
• C) losses to the monopoly.
• D) either economic profits or losses, depending on the efficiency of the monopoly.

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Definitions:

Social Security

A government program that provides financial assistance to people with insufficient or no income, especially the elderly, disabled, and families with dependent children.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group; or the broader social context of these practices.

Public Issues

Matters of concern affecting the community or society as a whole, often debated in public forums and requiring collective action or policies to address.