The Public Service Company of Colorado is a natural monopoly in the transmission and distribution of electric power. As such, it will incur an economic loss if it
A) goes out of business.
B) prices its services at average total cost.
C) prices its services at marginal cost.
D) all of the above
C
You might also like to view...
Who promised "two cars in every garage and a chicken in every pot?"
A. Herbert Hoover B. Franklin D. Roosevelt C. Dwight D. Eisenhower D. John F. Kennedy
In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD1 to AD2, then
A) the new short-run equilibrium will be at point B. B) the new short-run equilibrium will be at point D. C) the new long-run equilibrium will be at point B. D) real Gross Domestic Product (GDP) per year will fall below Y1.
The demand for loanable funds increases if
A) expected profit increases. B) population growth slows. C) firms fear a recession. D) wealth increases. E) technological growth slows.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the amount of capital increases from 3 to 4 units, the marginal product of the fourth unit of labor
A. decreases by 12 units. B. increases by 5 units. C. increases by 8 units. D. decreases by 3 units. E. none of the above