In Regulating a Natural Monopoly, the Price Strategy That Ensures

question 239

Multiple Choice

In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price

• A)equal to average total cost where it intersects the demand curve.
• B)equal to marginal cost where it intersects the demand curve.
• C)equal to average variable cost where it intersects the demand curve.
• D)corresponding to the demand curve where marginal revenue equals zero.

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Definitions:

Spanish Rule

pertains to the historical period when Spain governed territories around the world, including parts of the Americas, through a system of viceroys and colonial administration.

Legal Equality

The principle that all individuals must be treated equally by the law, without any discrimination.

Assimilate

The process by which individuals or groups absorb and integrate the cultural traditions, language, or behaviors of another group or society.

Tenskwatawa

A Native American religious and political leader of the Shawnee tribe, known as the Prophet, who advocated for a return to traditional ways and resistance against European-American expansion in the early 19th century.