PLEASE EXPLAIN A monopolist would sell its product at a price equal to average t

Question

PLEASE EXPLAIN

A monopolist would sell its product at a price equal to average total cost when

Question 15 options:

it is limited by the imposition of a government-set or regulated price to a fair return

average fixed cost is zero

it is ordered to shut down by the government

additional barriers to entry emerge, granting the monopoly firm more market power

A)

it is limited by the imposition of a government-set or regulated price to a fair return

B)

average fixed cost is zero

C)

it is ordered to shut down by the government

D)

additional barriers to entry emerge, granting the monopoly firm more market power

Explanation / Answer

Answer

Option A

it is limited by the imposition of a government-set or regulated price to a fair return

The government restricts natural monopoly by setting the price at ATC so this is the example of restriction of government set price.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.