Question

The government's main aim in Average Cost Pricing is to increase producer surplus. reduce deadweight loss....

The government's main aim in Average Cost Pricing is to

increase producer surplus.

reduce deadweight loss.

maximise profit.

increase quantity supplied.

Homework Answers

Answer #1

Answer:- Increase the Quantity supplied

​​​​​​Explanation::

=> under average cost pricing the government regulate the monopoly market in which they are restricted to set price in which they are not high the price beyond average total cost.

=> so here indirectly the government wants to increase the production and Quantity supply so but price should not increase beyond limit so that will socially beneficial to the people

=> it's normal average profit but it's socially efficient

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