Governments regulate natural monopoly by capping the price at _____. A. Marginal revenue and allowing the monopoly

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Governments regulate natural monopoly by capping the price at _____.
A. Marginal revenue and allowing the monopoly to maximize profit
B. Marginal cost so that the monopoly is efficient and makes zero economic profit
C. Average total cost, which allows the monopoly to be inefficient but make zero economic profit
D. The buyers’ willingness to pay, which makes the monopoly operate efficiently

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Foundations Of Economics

ISBN: 9780135897478

9th Edition

Authors: Robin Bade, Michael Parkin

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