Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC.This means that:

A) both productive and allocative efficiency are being achieved.
B) productive efficiency is being achieved,but not allocative efficiency.
C) allocative efficiency is being achieved,but not productive efficiency.
D) neither productive nor allocative efficiency is being achieved.

Regulated Monopoly

A market structure where a single firm dominates the market but its operations are overseen and controlled by government regulations to prevent abuse of its market power.

Productive Efficiency

A situation in which an economy or production process cannot produce more of one good without sacrificing the production of another good and without improving the production technology.

Allocative Efficiency

A state of the economy in which production is in accordance with consumer preferences; every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it.