A policy of marginal-cost pricing will ensure that many regulated industries will lose money.

Question

Quizplus · Accepted Answer

Marginal-cost pricing means that prices are set at the level of the additional cost of providing one more unit of the product or service. This can often be lower than the average cost, which means that if prices are set at marginal cost, the regulated industries may not be able to cover their total costs and make a profit. This can lead to losses for these industries.

A Policy of Marginal-Cost Pricing Will Ensure That Many Regulated