问题
单项选择题
Which of the following describes the regulatory practice of setting prices at a level where the monopoly firm's average total cost curve intersects the demand curve（）
A. Average cost pricing.
B. Marginal cost pricing.
C. Cost-of-service pricing.
答案
参考答案：A
解析：
Under average cost pricing, regulators attempt to force monopolies to reduce prices to where a firm's average total cost curve intersects the market demand curve. This will increase output and decrease price, increase allocative efficiency, and ensure zero economic profit.