CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

In regulating a natural monopoly, the most commonly adopted compromise pricing rule by a regulator is the ______.
A. marginal cost pricing rule
B. average cost pricing rule
C. total cost pricing rule
Explanation: The average cost pricing rule allows the natural monopoly to cover its costs and to break even (make zero economic profit).

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