When promoting average cost pricing, regulators
A) include what they consider to be a normal rate of return on investment.
B) encourage firms to produce at the output level where price equals marginal cost.
C) fail to consider a return to investors, so regulated firms often have a hard time raising investment funds.
D) inflate costs so much that price ends up as large as would prevail under unregulated monopoly.
Correct Answer:
Verified
Q62: Without any regulation, the natural monopolist will
A)
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