If the Government Regulates the Price That a Natural Monopolist

question 618

Multiple Choice

If the government regulates the price that a natural monopolist can charge to be equal to the firm's average total cost, the firm will

• A)earn zero profits.
• B)earn positive profits, causing other firms to enter the industry.
• C)earn negative profits, causing the firm to exit the industry.
• D)minimize costs in order to lower the price that it charges.

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Definitions:

Remove Field

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Delete Column

A function in spreadsheet or database software that permanently removes a column and its data from the table.

Remove Column

The action of deleting a vertical section of cells in a spreadsheet or database, effectively eliminating that dataset from view or analysis.

Record Selector

A tool in database and spreadsheet software that allows users to select or highlight individual or multiple rows of data.