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As a Policy Option for Regulating Natural Monopoly,marginal Cost Pricing

Question 17

Multiple Choice

As a policy option for regulating natural monopoly,marginal cost pricing is desirable because


A) consumers pay the lowest possible price that will generate sufficient revenue to cover the costs of the natural monopolist.
B) allocative efficiency is achieved.
C) price is set equal to minimum long-run average cost.
D) all of the above.

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