Question: I am having trouble understanding this problem. Because suppliers in natural monopolies, such as public utilities, enjoy economies of scale, they can work with lower
I am having trouble understanding this problem.


Because suppliers in natural monopolies, such as public utilities, enjoy economies of scale, they can work with lower production costs than can a large number of smaller companies. At the same time, monopolists may charge very high prices, and as a result, the government often regulates these firms. Match each regulatory environment to the graph depicting the resulting level of production. . '1' prices regulated by the marginal no price regulation cost prICIng rule Drag each item above to its appropriate location in the image. Note that every item may not have a match, while some items may have more than one match. I\\ |\\ |\\ prices regulated " by the marginal . . 'i' . . no price regulation cost prlcmg rule Drag each item above to its appropriate location in the image. Note that every item may not have a match, while some items may have more than one match
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