In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, the deadweight loss to society is

A) zero.
B) efc.
C) ebc.
D) gac.


C

Economics

You might also like to view...

The monetary base consists of:

A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits.

Economics

If the federal funds rate is below the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall

A) greater than; lend B) greater than; borrow C) less than; lend D) less than; borrow

Economics

Why are command- and -control regulations less flexible than incentive based systems?

What will be an ideal response?

Economics

From the passage of the 16th amendment to the U.S. Constitution, income taxes became the primary source of income for the United States.

Answer the following statement true (T) or false (F)

Economics