Market failure occurs in natural monopolies because
A) The monopolist fails to maximize profits.
B) The monopolist charges a price lower than marginal cost.
C) Consumers get inaccurate information about the opportunity cost of the product.
D) Consumers are not willing to pay the price that the monopolist charges.
Correct Answer:
Verified
Q23: An unregulated natural monopoly can lead to
A)Higher
Q24: If the government regulated a natural monopolist
Q25: Which of the following is not a
Q26: To maximize profit,a natural monopolist produces the
Q27: The long-run average total cost curve of
Q29: Marginal cost pricing means that a firm
Q30: An unregulated natural monopoly is most likely
Q31: If the government wants a natural monopolist
Q32: A major drawback of providing subsidies to
Q33: If a natural monopoly is forced to
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