Question content area

Part $1$

Why would it be economically efficient to require a

natural monopoly

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to charge a price equal to marginal$$ cost$?$

Part $2$

A$.$

Economic efficiency requires the total benefit of producing a good to equal the total cost of producing it$.$

B$.$

Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it$.$

C$.$

Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers greater than the additional cost of producing it$.$

D$.$

Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the additional cost of producing it$.$

E$.$

Economic efficiency requires natural monopolies to earn zero economic profits.