Regulation of the quantity produced by a monopolist typically has no impact on the quality of the product.

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Regulation of the quantity produced by a monopolist can impact the quality of the product. Monopolists may choose to decrease the quality of the product if quantity is regulated to maintain their profit margins. On the other hand, if quality is regulated, the monopolist may choose to decrease the quantity produced to maintain their profit margins.

Regulation of the Quantity Produced by a Monopolist Typically Has