Regulators employ average cost pricing instead of marginal cost pricing because

A) average cost pricing is more efficient than marginal cost pricing.
B) price must be high enough to cover all opportunity costs if the firm is to stay in business.
C) the price is lower with average cost pricing.
D) average cost pricing is simpler to compute than marginal cost pricing.

B

Economics

You might also like to view...

Prudential regulation ________

A) requires that banks maintain the confidentiality of loan applications B) is administered by a specific insurance company C) is necessitated by the government's safety net for the banking system D) is an effective substitute for prudential supervision

Economics

The public sector grew the most in Japan, rising from 35 percent relative to GDP in 1997 to 39 percent in 2016

a. True b. False Indicate whether the statement is true or false

Economics