If a natural monopoly has an average cost pricing rule imposed, the rule will
A) maximize total surplus in the regulated industry.
B) generate an economic loss for the regulated firm.
C) reduce the consumer surplus and generate a deadweight loss when compared to a marginal cost pricing rule.
D) set price below marginal cost.
C
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Refer to the following graph. Which of the following statements is true?
a. When output is zero losses equal TFC.
b. At the Break-Even Point marginal revenue equals marginal cost.
c. Any output below the Break-Even Point indicates profits are earned.
d. When Total Revenue equals Total Cost profits are maximized.
If the dependent variable Y is directly related to the independent variable X, this means that changes in X cause changes in Y
a. True b. False
Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. 
Figure 13.2 Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.
A. profit B. total revenue C. marginal cost D. marginal revenue
Stagflation's demise during the 1980s resulted in a:
A. Movement along the Phillips Curve toward less unemployment B. Movement along the Phillips Curve toward more inflation C. Shift in the Phillips Curve to the left D. Shift in the Phillips Curve to the right