For a regulated natural monopoly, an average cost pricing rule ...

[wenmo]

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]

Answer to Question 1

B

Answer to Question 2

B