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The Quantity Produced by a Natural Monopolist Facing an Average-Cost

Question 351

Multiple Choice

The quantity produced by a natural monopolist facing an average-cost pricing policy will be


A) less than the quantity produced by a marginal cost pricing policy.
B) that quantity at which average costs are at their minimum.
C) that quantity at which marginal costs are at their minimum.
D) the same as the quantity that would be produced in perfect competition.

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