Which of the Following Governmental Actions Would Eliminate Some or All

question 408

Multiple Choice

Which of the following governmental actions would eliminate some or all of the inefficiency that results from monopoly pricing? The government could

• A)regulate the monopoly.
• B)prohibited the monopoly from price discriminating.
• C)force the monopoly to operate at a point where its marginal revenue is equal to its marginal cost.
• D)None of the above would eliminate any inefficiency associated with a monopoly.

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