-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to

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Regulators often require natural monopolies to charge a price equal to average cost to ensure they can cover all their costs and operate sustainably, without making excessive profits at the expense of consumers. This approach allows the firm to break even by covering both variable and fixed costs over the long run.

-Refer to the Above Figure