The Economic Efficiency of a Natural Monopoly Can Be Improved

Multiple Choice

The economic efficiency of a natural monopoly can be improved with the use of two-part tariffs because it allows the monopoly to

A) charge users according to their willingness to pay.
B) charge residential users different rates than business users.
C) charge users according to their ability to pay.
D) charge users separately for fixed and variable costs.
E) lower its total costs.