Under profit regulation, a natural monopolist has an incentive to be very careful about minimizing costs.

Name: Under profit regulation, a natural monopolist has an incentive to be very careful about minimizing costs.
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Under profit regulation, a natural monopolist might not have a strong incentive to minimize costs because the regulator sets prices to allow for a reasonable profit over costs, which can reduce the monopolist's motivation to cut costs aggressively.

Under Profit Regulation, a Natural Monopolist Has an Incentive to Be