Marginal cost regulatory pricing turns out to be the same as output regulation (for a natural monopoly firm) if the output level set by government is the
A) amount at which marginal cost equals average total cost.
B) resource-allocative efficient amount.
C) amount at which average total cost is at its highest level.
D) amount at which marginal revenue equals marginal cost.
E) none of the above
Correct Answer:
Verified
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