Which of the following governmental actions would eliminate some or all of the inefficiency that results from monopoly pricing? The government could
A)regulate the monopoly.
B)prohibited the monopoly from price discriminating.
C)force the monopoly to operate at a point where its marginal revenue is equal to its marginal cost.
D)None of the above would eliminate any inefficiency associated with a monopoly.

Question

Quizplus · Accepted Answer

Regulating the monopoly can help eliminate inefficiency by setting prices closer to marginal cost, reducing the deadweight loss typically associated with monopoly pricing.

Which of the Following Governmental Actions Would Eliminate Some or All