The government's main aim in Average Cost Pricing is to
increase producer surplus. |
||
reduce deadweight loss. |
||
maximise profit. |
||
increase quantity supplied. |
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
Get Answers For Free
Most questions answered within 1 hours.