-If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the price will be
A) $2.
B) $4.
C) $5.
D) $6.

Question

-If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the price will be
A) $2. 
B) $4. 
C) $5. 
D) $6.

Quizplus · Accepted Answer

A marginal cost pricing rule sets the price equal to the marginal cost. In the context of a natural monopoly, this typically results in a price that is lower than the average total cost, which is often represented by the lowest point on the marginal cost curve.

-If a Marginal Cost Pricing Rule Is Imposed on the Natural