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Natural monopolies will produce a socially optimal level of output if government subsidies ensure an economic profit of zero?

and the market price is set by regulators at the point of intersection between long-run :

 a. marginal cost and marginal revenue. 

 b. marginal cost and demand. 

 c. average cost and marginal revenue. 

 d. average cost and demand.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/26
Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

d. average cost and demand.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

My Answer Is Option " D "                                    .

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( D ) 

Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I believe option D is the most logical answer

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

D. Is...........right...............................

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

option D _______________________________

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: d. average cost and demand.

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

 

I agree with experts 

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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

I agree with the experts answer above.

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