Suppose that a regulated natural monopolist has $1 million in physical assets,produces 10,000 units and has total explicit costs of $100,000.If the monopolist is allowed a 10% return on his investment in capital,his cost-plus price will be
A) $10.00.
B) $10.10.
C) $11.00.
D) $20.00.
E) $20.20.
Correct Answer:
Verified
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