For a Natural Monopoly,price Efficiency Means

question 136

Multiple Choice

For a natural monopoly,price efficiency means

• A)Price is set above marginal cost.
• B)Price is set equal to average total cost.
• C)Economics profits are earned.
• D)Price is set equal to marginal cost.

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Definitions:

Compact Disks

Optical storage media used to store data, including music and software, now largely superseded by digital formats.

Substitute

A product or service that can be used in place of another to satisfy consumer demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specified period.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, widely consumed by humans.