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Suppose a natural monopoly is regulated such that the price charged must be equal to the marginal cost of providing the good. This type of regulation is called ________ regulation.
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Suppose a natural monopoly is regulated such that the price charged must be equal to the marginal cost of providing the good. This type of regulation is called ________ regulation.

User OuttaSpaceTime
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1 Answer

5 votes

Answer:

Price

Step-by-step explanation:

The marginal cost pricing rule refers to the price rule for the natural monopoly that fixed the price and the same should be equivalent to the marginal cost. Also, it give sufficient output in order to meet out the overall market demand at the time when the average total cost is less as compared to two or more firms

So, it is a price regulation

User Arcanemachine
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