The higher the bid in a first-price sealed-bid auction, the ________ the chances of winning and the ________ the surplus earned

Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs?

A) average cost pricing rule B) rate of return regulation C) price cap regulation D) None of the above encourages cost cutting.

The marginal cost curve intersects the average fixed cost curve at its minimum

Indicate whether the statement is true or false