Multiple Choice
Micromania's City Council has been discussing policy options regarding the local taxi company. Citizens have complained that it is a natural monopoly and that its fees are inappropriate. Which of the following would allow the company to stay in business while guaranteeing a "reasonable" taxi price for citizens?
A) average cost pricing
B) marginal cost pricing
C) laissez-faire pricing
D) countervailing pricing
E) contestable pricing
Correct Answer:
Verified
Correct Answer:
Verified
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