Author Question: If the government wishes to provide a natural monopolist with a fair rate of return, it will force ... (Read 37 times)

yoooooman · **on:** Jun 30, 2018

If the government wishes to provide a natural monopolist with a fair rate of return, it will force the firm to set
a. P = MC
b. P = AC
c. P = MR
d. P = AVC
e. MR = MC

Question 2

If the loss-minimizing output for a perfectly competitive firm is zero, then, at all other output levels,
a. price must be greater than average variable cost
b. the marginal cost curve must slope downward
c. marginal cost is less than marginal revenue
d. total revenue is less than total variable cost
e. total revenue is less than average variable cost