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Subject - Economics:

Microeconomics

MCQ - 157-4167

Question:

If the government wishes to regulate a natural monopoly so that it earns a normal profit, it sets

  1. Price = Marginal cost.
  2. Marginal revenue = Marginal cost.
  3. Price = Average total cost.
  4. Marginal revenue = Marginal cost.
  5. Marginal revenue = Average total cost.

Correct Answer: C

Explanation:

If P = ATC, economic profit is zero, or normal.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: If the government wishes to regulate a natural monopoly so that it earns a normal profit, it sets , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 157-4167.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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