City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.

If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects average cost, then compared to the unregulated natural monopoly, the price will _______ and the quantity will _______.

Question

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.

If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects average cost, then compared to the unregulated natural monopoly, the price will _______ and the quantity will _______.

Quizplus · Accepted Answer

The Answer of City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.

If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects average cost, then compared to the unregulated natural monopoly, the price will _______ and the quantity will _______.

City Gas Is a Natural Monopoly That Supplies Natural Gas