A natural monopolist will voluntarily choose to produce at the point where P = MC.

Name: A natural monopolist will voluntarily choose to produce at the point where P = MC.
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Question

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A natural monopolist will not voluntarily produce where price equals marginal cost (P = MC) because it would not cover its average total costs, leading to losses. Instead, it typically produces where marginal cost equals marginal revenue (MC = MR) to maximize profits.

A Natural Monopolist Will Voluntarily Choose to Produce at the Point