Which of the following is a criticism of average-cost pricing as a regulatory response to a natural monopoly?
A)With average-cost pricing,the output produced is lower than the efficient level of output.
B)Firms that practice average-cost pricing suffer persistent losses.
C)Imperfect information about the firm's costs reduces the effectiveness of average-cost pricing.
D)Average-cost pricing reduces the firm's economic profit but also reduces consumer welfare.
E)With average-cost pricing,the price in the market is lower than the efficient price.

Question

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The Answer of Which of the following is a criticism of average-cost pricing as a regulatory response to a natural monopoly?
A)With average-cost pricing,the output produced is lower than the efficient level of output.
B)Firms that practice average-cost pricing suffer persistent losses.
C)Imperfect information about the firm's costs reduces the effectiveness of average-cost pricing.
D)Average-cost pricing reduces the firm's economic profit but also reduces consumer welfare.
E)With average-cost pricing,the price in the market is lower than the efficient price.

Which of the Following Is a Criticism of Average-Cost Pricing