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If a Regulatory Commission Set a Price for a Natural

Question 233

Multiple Choice
If a regulatory commission set a price for a natural monopoly where marginal cost is equal to demand, A)the firm would earn monopoly profits. B)economic efficiency would not be achieved. C)the firm would incur a loss. D)the firm would break even.

If a regulatory commission set a price for a natural monopoly where marginal cost is equal to demand,


A) the firm would earn monopoly profits.
B) economic efficiency would not be achieved.
C) the firm would incur a loss.
D) the firm would break even.

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