One way that natural monopolies are typically regulated is
a. by setting a price that makes economic profit zero.
b. by forcing the firm to set price equal to marginal cost
c. by setting a price that gives owners a "fair rate of return"
d. by forcing the firm to set price equal to minimum average total cost
e. by setting a price that maximizes the firm's economic profit
C
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What factor changes the quantity of real GDP supplied and results in a movement along the AS curve?
What will be an ideal response?
Government gives subsidies to encourage production of products with beneficial externalities
a. True b. False Indicate whether the statement is true or false
Gross Domestic Product includes the sale of intermediate goods and services
a. True b. False Indicate whether the statement is true or false
Sally and Joe recently graduated from college, both majoring in history. Joe took a prestigious job as a legal clerk. Sally took a job as a specialist in fighting forest fires. Both received additional training before entering their jobs. Who will likely earn a higher salary and why?