Author Question: A perfectly competitive firm produces so that its marginal cost equals the price. Indicate ... (Read 195 times)

Zulu123 · **on:** Jun 29, 2018

A perfectly competitive firm produces so that its marginal cost equals the price.

Indicate whether the statement is true or false

Question 2

Under an average cost pricing rule, a regulated natural monopoly ________ and there is ________.

A) makes an economic profit; a deadweight loss
B) makes zero economic profit; no deadweight loss
C) makes zero economic profit; a deadweight loss.
D) incurs an economic loss; no deadweight loss