In order to ensure allocative efficiency on the part of a natural monopoly, regulators would set ...

Author Question: In order to ensure allocative efficiency on the part of a natural monopoly, regulators would set ... (Read 59 times)

amal

Hero Member
Posts: 572

on: Jun 30, 2018

In order to ensure allocative efficiency on the part of a natural monopoly, regulators would set price equal to marginal cost.
a. True
b. False

Question 2

For a perfectly competitive firm,
a. P = MR at all output levels
b. P = MR at the profit-maximizing quantity only
c. P > MR at all output levels
d. P < MR at the profit-maximizing quantity only
e. P < MR at all output levels

courtney_bruh

Sr. Member
Posts: 308

Reply #1 on: Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

A

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