In July 2008, the Federal Communications Commission Approved the Merger

In July 2008, the Federal Communications Commission approved the merger of satellite radio providers XM Satellite and Sirius Satellite Radio, establishing a single satellite radio company in America. If the new company was a natural monopoly, which of the following would be a regulation to ensure an efficient quantity of satellite radio service?

A) Application of the average cost pricing rule
B) Government subsidization
C) Government taxation
D) Application of the marginal cost pricing rule

Correct Answer:

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