An average cost pricing rule for a natural monopoly sets the price _______

Author Question: An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, ... (Read 215 times)

student77

Hero Member
Posts: 567

on: Jun 29, 2018

An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, thereby ________ a deadweight loss.

A) below; avoiding
B) below; creating
C) above; avoiding
D) above; creating

Question 2

Perfectly competitive firms are price takers.

Indicate whether the statement is true or false

Brummell1998

Sr. Member
Posts: 324

Reply #1 on: Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

TRUE

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