What does average cost regulation of a natural monopoly NOT involve?
A) production at the output level at which demand intersects the average total cost curve
B) a subsidy
C) a tendency for average total cost curves to shift upward over time
D) production at a socially inefficient level of output

Question

Quizplus · Accepted Answer

A subsidy is not involved in average cost regulation of a natural monopoly.

What Does Average Cost Regulation of a Natural Monopoly NOT