Answer Happy

When setting rates that natural monopolists can charge,regulatory commissions attempt to establish a maximumprice:
a.
at the minimum long-run average cost of themonopolist.
b.
at the minimum short-run average cost of themonopolist.
c.
where price equals average total cost plus a fair rateof return on the invested capital of the monopolist.
d.
where price equals average variable cost plus a fairrate of return on the invested capital of themonopolist.
e.
at the minimum long-run average variable cost of themonopolist.