Microeconomics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson

Exercise 9

Does economic theory indicate that an ideal regulatory agency that forces a monopolist to charge a price equal to either marginal or average total cost will improve economic efficiency Explain. Does economic theory suggest that a regulatory agency will in fact regulate in a manner consistent with economic efficiency What are some of the factors that complicate the regulatory function