A monopoly firm operates with declining marginal cost.If regulators impose marginal cost pricing, the market will
A)remain a monopoly but behave like a perfectly competitive industry.
B)become perfectly competitive.
C)be entered by additional firms but will not necessarily become perfectly competitive.
D)be exited by the existing firm if the regulators will let the firm leave the market.

Question

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The Answer of A monopoly firm operates with declining marginal cost.If regulators impose marginal cost pricing, the market will
A)remain a monopoly but behave like a perfectly competitive industry.
B)become perfectly competitive.
C)be entered by additional firms but will not necessarily become perfectly competitive.
D)be exited by the existing firm if the regulators will let the firm leave the market.

A Monopoly Firm Operates with Declining Marginal Cost