-Refer to the Above Figure

question 283

Multiple Choice

-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to

• A) marginal cost, which is P1.
• B) marginal cost, which is P2.
• C) average cost, which is P3.
• D) average cost, which is P4.

---

Definitions:

Acquisition Strategies

Strategies employed by organizations to acquire or merge with other companies to increase market share, diversify products, or achieve other business objectives.

Cost-Cutting Strategies

Measures implemented by organizations to reduce expenses and improve financial efficiency without compromising on the quality of products or services.

Informal Element

Aspects of a culture or organization that are not officially codified but influence behavior and interactions.

Perceptions

The process of organizing and interpreting sensory information to make sense of the environment and experiences.