_____ regulation is the most common form of price regulation that governments use to regulate natural monopolies.
A) Average cost pricing
B) Antitrust
C) Marginal cost pricing
D) Monopoly pricing

Question

Quizplus · Accepted Answer

Average cost pricing is commonly used to regulate natural monopolies by setting prices equal to the average cost of production, ensuring the firm covers its costs while preventing excessive profits.

_____ Regulation Is the Most Common Form of Price Regulation