If a regulatory board wanted to make sure that a natural monopoly chose a price resulting in the efficient level of output, it should set a price equal to:
a. marginal cost

b. average fixed cost.
c. average variable cost.
d. average total cost.


a

Economics

You might also like to view...

According to figure 1.1, the favorite explanation for continuing poverty in America was "lack of effort" by the poor

Indicate whether the statement is true or false

Economics

Vertical equity refers to a tax system in which individuals with similar incomes pay similar taxes

a. True b. False Indicate whether the statement is true or false

Economics

If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could

a. buy $300,000 worth of bonds. b. buy $225,000 worth of bonds. c. sell $300,000 worth of bonds. d. sell $225,000 worth of bonds.

Economics

Describe a recent violation of the Wheeler-Lea Act of 1938

What will be an ideal response?

Economics