Making regulated monopolies adopt marginal cost pricing

Assignment Help Business Economics

Reference no: EM13896786

An argument for making regulated monopolies adopt marginal cost pricing is that this would:

a. Increase productive efficiency by making price equal average cost

b. Benefit higher income groups by making monopoly products more affordable

c. Increase managerial incentives to reduce employment and production

d. Make the marginal cost equal to society's valuation of the marginal benefit

Reference no: EM13896786

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