2. Suppose you are a regulator of the local public electric utility, a natural monopoly with decreasing

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2. Suppose you are a regulator of the local public electric utility, a natural monopoly with decreasing average costs throughout the relevant range of production. What is your job? What information do you need in order to carry it out? How would you obtain such information? Would you rather price according to marginal or average cost? Why?

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Fundamentals Of Economics For Business

ISBN: 398357

2nd Edition

Authors: John Smithin ,David Barrows

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