In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price
A) corresponding to the demand curve where marginal revenue equals zero.
B) equal to average variable cost where it intersects the demand curve.
C) equal to average total cost where it intersects the demand curve.
D) equal to marginal cost where it intersects the demand curve.
C
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Equilibrium in the labor market
A) cannot occur if the production function is shifting upward. B) can happen only when actual GDP exceeds potential GDP. C) means that resources are allocated inefficiently D) occurs when actual GDP is equal to potential GDP
The part of the balance of payments that records (generally) minor transactions such migrant's transfers, copyrights, and trademarks is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
Issuers of coupon bonds
A) make a single payment of principal when the bonds matures, but multiple payments of interest over the life of the bond. B) make a single payment of interest and principal. C) make multiple payments of principal, but a single payment of interest. D) make a single payment of principal at the time the bond is issued and multiple payments of interest over the life of the bond.
During the short run, a firm has enough time to adjust:
a. its technology. b. its fixed inputs. c. its variable inputs. d. all of its inputs-both fixed and variable.