A natural monopoly
A) faces more competition after regulation.
B) might exaggerate its costs if it is regulated using rate of return regulation.
C) might falsely minimize its costs if it is regulated using rate of return regulation.
D) might falsely minimize its costs if it is regulated using a marginal cost pricing rule.
E) is allowed to maximize its profit under a marginal cost pricing rule.
B
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The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
Wealthy countries increasingly feel that trade:
A. is sometimes acting as a barrier to poorer countries' development. B. is an effective political tool to use against poorer countries. C. can sometimes be a more powerful lever than aid to help poorer countries develop. D. can help poorer countries development, but hurt their overall growth.