One Problem with Regulating a Monopolist on the Basis of Cost

question 88

Multiple Choice

One problem with regulating a monopolist on the basis of cost is that

• A)by focusing on costs, the regulators ignore profits.
• B)it does not provide an incentive for the monopolist to reduce its cost.
• C)a monopolist's costs, by definition, are higher than costs of perfectly competitive firms.
• D)a monopolist is still able to generate excessive economic profits.

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Definitions:

True To False Transition

The change of a logical signal or condition from a true (high, 1) state to a false (low, 0) state.

Rung Conditions

In ladder logic programming for PLCs, rung conditions refer to the state of the inputs and logic that determine whether the output of a particular rung (a horizontal section of the ladder diagram) will be active or not.

Timer Tag Name

A label or identifier assigned to a timer to distinguish it within a system, especially in programming contexts.