The government should set the price for natural monopolies at their:
A)average total cost.
B)marginal cost.
C)average variable cost.
D)fixed cost.

Name: The government should set the price for natural monopolies at their: A)average total cost. B)marginal cost. C)average variable cost. D)fixed cost.
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Question

Quizplus · Accepted Answer

Setting the price at the average total cost allows the natural monopoly to cover all its costs, including fixed costs, while preventing excessive profits, ensuring fair pricing for consumers.

The Government Should Set the Price for Natural Monopolies at Their