Regulated monopolies that face rising long- run costs and which are forced to price their output at average cost will provide
A) less output than what is socially optimal.
B) the socially optimal amount of output.
C) more output than what is socially optimal.
D) more output than what can be absorbed by the market.
E) so little output that there will be a shortage.

Question

Quizplus · Accepted Answer

The Answer of Regulated monopolies that face rising long- run costs and which are forced to price their output at average cost will provide
A) less output than what is socially optimal.
B) the socially optimal amount of output.
C) more output than what is socially optimal.
D) more output than what can be absorbed by the market.
E) so little output that there will be a shortage.

Regulated Monopolies That Face Rising Long- Run Costs and Which