1. What problem will arise in setting price equal to long-run marginal cost if the firm faces...

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1. What problem will arise in setting price equal to long-run marginal cost if the firm faces economies of scale and hence falling LRMC and LRAC curves? (Clue: try drawing the diagram.)

2. Do these arguments against rate-of-return regulation help support the case for deregulation?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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Question Posted: Apr 03, 2019 09:11 AM

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1. What problem will arise in setting price equal to long-run marginal cost if the firm faces...

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1 The LRMC curve will be below t...View the full answer

Economics

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