Multiple Choice
Which of the following is one method by which the government can regulate the price charged by a natural monopoly?
A) Making marginal cost equal to marginal revenue pricing
B) Setting prices for a period and then allowing the firm to keep any profits made over that period
C) Average variable cost pricing
D) Threatening to shut down the firm
E) Fixed cost pricing
Correct Answer:
Verified
Correct Answer:
Verified
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