Which of the following is true about this firm?

Question

Quizplus · Accepted Answer

The fact that society can benefit from government regulation using marginal cost pricing without a subsidy implies that the firm operates as a natural monopoly, but it does not necessarily mean that the firm is a natural monopoly. Additionally, the statement about marginal cost pricing assuring technical efficiency is not necessarily true, as there may be other factors to consider. Finally, the statement about profit regulation assuring allocative efficiency is not applicable in this scenario as no information is given about profit regulation.

Which of the Following Is True About This Firm