Regulators employ average cost pricing instead of marginal cost pricing because
A. the price is lower with average cost pricing.
B. price must be high enough to cover all opportunity costs if the firm is to stay in business.
C. average cost pricing is more efficient than marginal cost pricing.
D. average cost pricing is simpler to compute than marginal cost pricing.
Answer: B
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Which of the following is true about the chairman of the Federal Reserve Board of Governors?
A. The chairman is elected by the Fed regional bank presidents. B. The chairman serves a 21-year term. C. A new chairman is elected as soon as a new U.S. president takes office. D. The chairman can be reappointed for more than one term.
In which of the following situations would you prefer to be the borrower?
A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent.