MCQOPTIONS
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| 1. |
If an authoritarian agency follows a rule of normal cost pricing, then an ordinary monopolist will |
| A. | be forced to shut down. |
| B. | produce more than it would if it were unregulated. |
| C. | earn economic profit greater than zero. |
| D. | earn more profit that it would if it were unregulated. |
| Answer» C. earn economic profit greater than zero. | |