Multiple Choice
Average cost pricing is an inefficient regulatory mechanism because:
A) if AC does not equal MC, price is too high or too low.
B) if AC equals MC, price is too high or too low.
C) if AC does not equal MC, output is too large or too small.
D) if AC equals MC, output is too large or too small.
Correct Answer:
Verified
Correct Answer:
Verified
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