Which of the following is true about this firm?

Question

Quizplus · Accepted Answer

The code "11ea9534_880a_0f12_9016_dfcc597bbe1e_TB5718_00" does not give any information about the firm or the industry it belongs to. Therefore, we cannot determine whether it is a natural monopoly or not. However, if society can benefit from government regulation using marginal cost pricing without a subsidy, it suggests that the firm may have market power and is charging a price above marginal cost. Marginal cost pricing would ensure that the firm is operating at a socially efficient level of output, which would benefit society. Marginal cost pricing does not necessarily assure technical efficiency or allocative efficiency, but it does ensure that the firm is producing at the lowest possible cost, given its current level of technology and resources.

Which of the Following Is True About This Firm