In order to implement average cost pricing regulation,it is necessary to provide a natural monopolist with a subsidy equal to the economic loss.

Name: In order to implement average cost pricing regulation,it is necessary to provide a natural monopolist with a subsidy equal to the economic loss.
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Question

Quizplus · Accepted Answer

In average cost pricing regulation, the natural monopolist is allowed to charge a price equal to the average cost of production. They are not provided with a subsidy to cover any economic loss.

In Order to Implement Average Cost Pricing Regulation,it Is Necessary