If regulators impose marginal-cost pricing on a natural monopolist, the government may have to:

Name: If regulators impose marginal-cost pricing on a natural monopolist, the government may have to:
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Marginal-cost pricing might result in prices that are too low for the monopolist to cover its total costs, including the fixed costs of production. In such cases, the government may need to subsidize the monopolist to ensure its financial viability and continued operation.

If Regulators Impose Marginal-Cost Pricing on a Natural Monopolist, the Government