An unregulated natural monopolist will want to

a.produce where MC = MR.

b.not produce any output.

c.produce where P = ATC.

d.produce output of too low quality.

Which of the following has the characteristics of a natural monopoly?

a.long distance telephone companies

b.food retailing

c.the lone gas station in a small town.

d.oil refining

One type of regulation often used in Canada by public utility commissions allows prices to reflect only the actual cost of production with no monopoly profits. This type of economic regulation is known as

a.creative response regulation

b.cost-of-service regulation

c.rate-of-return regulation.

d.price per constant-quality-unit regulation.