Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to
A) marginal cost, which is P1.
B) marginal cost, which is P2.
C) average cost, which is P3.
D) average cost, which is P4.
C
Economics
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Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?
A) a change in government expenditures on goods and services B) a change in monetary policy C) a change in the price level D) a change in foreign incomes E) a change in expectations about the future
Economics
What is meant by accommodation?
Economics