Regulators usually encourage natural monopolists to engage in

Name: Regulators usually encourage natural monopolists to engage in
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Question

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Regulators usually encourage natural monopolists to engage in average cost pricing because it is a fair and efficient pricing method for consumers. Marginal cost pricing may not be sustainable for the firm in the long run, and subsidies from the government would create a burden on taxpayers. Inefficient pricing would be detrimental to both the firm and consumers.

Regulators Usually Encourage Natural Monopolists to Engage in