When Used with a Natural Monopoly,an Average Cost Pricing Rule

question 174

Multiple Choice

When used with a natural monopoly,an average cost pricing rule results in

• A) the efficient level of output.
• B) economic losses for the firm.
• C) the need for government to subsidize the natural monopoly.
• D) zero economic profit for the firm.
• E) the firm making an economic profit.

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Definitions:

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, and regulating movement and emotional responses.

Myelin Sheath

A fatty layer that encases the axons of some nerve cells, facilitating the rapid transmission of nerve impulses.

Axon

A long, narrow outgrowth of a neuron’s cell body that lets the neuron transmit information to other neurons.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems involved in muscle activation and memory among other functions.