If a regulatory commission wants to provide a natural monopoly with a fair return, it should establish a price that is equal to

A) minimum average fixed cost.
B) average total cost.
C) marginal cost.
D) marginal revenue.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, often due to economies of scale.

Fair Return

A reasonable profit for a business, considered equitable for both the business owners and consumers, typically governed by regulatory strategies.

Average Total Cost

The total cost divided by the number of goods produced, indicating the per unit cost of production.