A Regulatory Authority Might Require a Monopoly to Use Marginal

Multiple Choice

A regulatory authority might require a monopoly to use marginal cost pricing because marginal cost pricing

A) lowers but does not eliminate deadweight loss to society.
B) does not change deadweight loss to society.
C) eliminates any deadweight loss to society.
D) minimizes the total cost of a natural monopoly.
E) increases deadweight loss to society.