An unregulated natural monopoly is most likely to
A) Earn an economic profit.
B) Produce where marginal cost equals price.
C) Charge a lower price than if the same product were produced in a competitive market because of the monopolist's greater technical efficiency.
D) Take advantage of the concept of marginal cost pricing.
Correct Answer:
Verified
Q25: Which of the following is not a
Q26: To maximize profit,a natural monopolist produces the
Q27: The long-run average total cost curve of
Q28: Market failure occurs in natural monopolies because
A)The
Q29: Marginal cost pricing means that a firm
Q31: If the government wants a natural monopolist
Q32: A major drawback of providing subsidies to
Q33: If a natural monopoly is forced to
Q34: For a natural monopoly,marginal cost
A)Intersects average total
Q35: Natural monopolies fail to minimize
A)Marginal cost.
B)Marginal revenue.
C)Average
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