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    Foundations of Macroeconomics
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    Exam 16: Monopoly
  5. Question
    Under a Marginal Cost Pricing Rule,a Natural Monopoly
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Under a Marginal Cost Pricing Rule,a Natural Monopoly

Question 211

Question 211

Multiple Choice

Under a marginal cost pricing rule,a natural monopoly


A) makes a reasonable profit.
B) makes an economic profit.
C) earns accounting profits, but breaks even in economic terms.
D) incurs an economic loss.
E) makes a normal profit, but it cannot be determined whether or not it makes an accounting profit.

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