Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. The per-unit cost of production in the economy described is:

Under the social interest theory of regulation, the goal of regulating natural monopolies is

A) to provide a larger, though not maximum, profit for the firms. B) to use average cost pricing. C) to provide an outcome similar to the competitive outcome. D) to provide a the maximum profit for the firms. E) None of the above answers is correct.

A monopolist operates at the minimum point of its ATC curve

A. only in the short run. B. only in the long run. C. in both the short run and the long run. D. in neither the short run nor the long run.