In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price
A) equal to average total cost where it intersects the demand curve.
B) equal to marginal cost where it intersects the demand curve.
C) equal to average variable cost where it intersects the demand curve.
D) corresponding to the demand curve where marginal revenue equals zero.
Answer: A
Economics
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The federal funds market is the market for
a. loans from the federal government. b. loans from the Federal Reserve. c. government borrowing and lending. d. interbank lending. e. all of the above.
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Explain the difference between productive efficiency and allocative efficiency. How do these efficiencies relate to monopolistic competition?
What will be an ideal response?
Economics