Regulated industries that exhibit economies of scale and marginal cost pricing will lead to losses.

Name: Regulated industries that exhibit economies of scale and marginal cost pricing will lead to losses.
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In regulated industries that exhibit economies of scale, marginal cost pricing can lead to losses because the price set at the marginal cost may not cover the total average costs, especially when those costs decrease as production increases.

Regulated Industries That Exhibit Economies of Scale and Marginal Cost