For a regulated natural monopoly, an average cost pricing rule sets price equal to A) average ...

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wenmo

Hero Member
Posts: 540

on: Jun 29, 2018

For a regulated natural monopoly, an average cost pricing rule sets price equal to

A) average fixed cost.
B) average total cost.
C) average external cost.
D) average variable cost.

Question 2

In the above table, the efficient level of output can be achieved through a per unit subsidy of

A) zero.
B) 20.
C) 60.
D) 120.

Benayers

Sr. Member
Posts: 328

Reply #1 on: Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

B

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