The Outcome of Regulating a Natural Monopoly Using the Marginal

question 89

Multiple Choice

The outcome of regulating a natural monopoly using the marginal cost pricing rule is

• A) that the firm makes a normal profit.
• B) that the firm maximizes its profit.
• C) that consumer surplus is less than what it would be if the firm maximized its profit.
• D) an efficient level of production.
• E) that the firm makes an economic profit.

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Definitions:

Delay Gratification

The ability to resist immediate temptations in order to achieve long-term goals, evidenced as a predictor of success in various aspects of life.

Self-Control

The ability to regulate and manage one's thoughts, emotions, and actions, especially in tempting or difficult situations.

Good Health

A state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.

Socially Inept

Describes individuals who struggle with social skills and often find it difficult to interact effectively with others.