To Allow a Public Utility (Which Is a Natural Monopoly)to

question 15

Multiple Choice

To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should

• A)do all of the following
• B)set price equal to average cost
• C)equate marginal cost and average cost
• D)set marginal cost equal to marginal revenue
• E)set price equal to marginal cost

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Definitions:

Indentured Servitude

A labor system where people paid for their passage to the New World by working for an employer for a certain number of years.

Socioeconomic Development

The process of social and economic development in a society, often measured by improvements in economic indicators, social well-being, and quality of life.

Political Development

The evolution of governance structures and policies within a state, focusing on the complex processes that lead to the formation and expansion of political institutions and democratic practices.

Massachusetts Bay Company Governor

The official appointed to oversee and govern the Massachusetts Bay Colony, a British settlement in New England, during the colonial period.