If natural monopolies are regulated to produce where there is resource-allocative efficiency, they produce where

Question

Quizplus · Accepted Answer

Resource-allocative efficiency occurs where price equals marginal cost, which ensures that the resources are allocated in a way that maximizes societal welfare by equating the price consumers are willing to pay with the cost of producing an additional unit of a good or service.

If Natural Monopolies Are Regulated to Produce Where There Is