单选题 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.

【正确答案】 A

【答案解析】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.