Why are government imposed average cost pricing and nationalization of industries so pricing is at marginal cost

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Why are government imposed "average cost pricing" and "nationalization of industries so pricing is at marginal cost" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Question Posted: Sep 19, 2017 09:40 AM

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Why are government imposed average cost pricing and nationalization of industries so pricing is at marginal cost

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PERFECT COMPETITION LONGRUN EQUILIBRIUM CONDITIONS The longrun equilibrium of a perfectly competitive industry generates six specific equilibrium conditions including 1 economic efficiency P MC 2 prof...View the full answer

Microeconomics An Intuitive Approach with Calculus

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