Cost-Plus Regulation of Private Natural Monopolies Means the Monopolist Can

Multiple Choice

Cost-plus regulation of private natural monopolies means the monopolist can charge a price equal to

A) his explicit costs.
B) his explicit costs plus 20%.
C) his explicit costs plus a markup equal to a normal rate of return.
D) his explicit variable costs.
E) his marginal cost plus a markup equal to a normal rate of return.