When a natural monopoly is regulated to charge a price equal to average total cost,consumer surplus increases,but total surplus decreases.

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When a natural monopoly is regulated to charge a price equal to average total cost, consumer surplus increases without necessarily decreasing total surplus. This regulation can lead to an efficient allocation of resources, where the price reflects the cost of providing the service, potentially increasing both consumer surplus and total surplus if done correctly.

When a Natural Monopoly Is Regulated to Charge a Price