If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,

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If a firm is forced to charge a price equal to its marginal cost, it would not be able to cover its fixed costs and would eventually be forced to go bankrupt. This is especially true in situations where there are scale economies, as the fixed costs would be spread out over a larger quantity of output, resulting in lower average total costs. Therefore, the firm would not be able to sustain this price in the long run.

If Government Forced a Firm to Charge a Price Equal