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
Q226: Producing at the point where price equals
Q227: Q228: In Canada,the difference between predatory pricing and Q229: Exclusive contracting involves provincial or municipal governments Q230: The problem of natural monopoly should be Q231: The application of exclusive contracting by governments
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents