53) Compared with average cost at the quantity that an unregulated monopolist would choose, average costs are higher at the quantity chosen by a monopoly facing an average-cost pricing policy.
54) When demand falls, the price charged by a monopoly under an average-cost pricing policy will fall.
55) Suppose an unregulated monopoly faces a negatively-sloped and steep average cost curve. If a second firm enters, what will happen to the first firm’s demand and average cost of production?
56) What is the disadvantage of average-cost pricing?
57) Why can’t the government force a natural monopolist to produce the competitive output?
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