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Posted: May 11th, 2022
Suppose a profit-making unregulated natural monopoly
Suppose a profit-making unregulated pure monopoly is introduced beneath the management of regulator who requires it in future to observe a marginal price pricing rule. Which of the next statements isfalse?a)The monopoly would transfer from making a revenue to creating a loss.b)The monopoly would scale back its output.c)The monopoly would now set its output the place its MC curve intersects its AR curve.d) The monopolist’s worth would now equal its marginal price.
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