When a Regulator Allows a Monopolist to Set Its Price

question 230

Multiple Choice

When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing

• A) marginal cost pricing.
• B) operating cost pricing.
• C) average cost pricing.
• D) optimal cost pricing.

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Definitions:

Neanderthals

An extinct species of hominids that lived in Eurasia until about 40,000 years ago, known for their robust build and large cranial capacity, sharing some genetic heritage with modern humans.

Coexisted

The state of living or existing at the same time or in the same place as another organism or entity.

Prosimii

A taxonomic grouping of primates that includes lemurs, lorises, and tarsiers, distinguished by traits such as nocturnal habits and a reliance on smell over vision.

Lemurs

A group of primates native to the island of Madagascar, known for their large eyes and nocturnal habits, part of the diverse clade of strepsirrhine primates.