Which form of price regulation increases consumer well-being and allows the firm to stay in business?
A)Allow the firm to set its own rate of return.
B)Set prices equal to marginal cost.
C)Set prices equal to average cost.
D)Set lower prices when efficiency improves.

Question

Quizplus · Accepted Answer

Setting prices equal to average cost allows the firm to cover its costs and stay in business while providing consumers with fair prices.

Which Form of Price Regulation Increases Consumer Well-Being and Allows