1.5. Does economic theory indicate that an ideal regulatory agency that forces a monopolist to charge a...

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1.5. Does economic theory indicate that an ideal regulatory agency that forces a monopolist to charge a price equal to either marginal or average total cost will improve economic efficiency?

Explain. Does economic theory suggest that a regulatory agency will in fact regulate in a manner consistent with economic efficiency? What are some of the factors that complicate the regulatory function?

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