10. In view of the problems involved in regulating natural monopolies, compare socially optimal (marginal-cost) pricing and...
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10. In view of the problems involved in regulating natural monopolies, compare socially optimal (marginal-cost) pricing and fair-return pricing by referring again to Figure 12.9. Assuming that a government subsidy might be used to cover any loss resulting from marginal-cost pricing, which pricing policy would you favor?
Why? What problems might such a subsidy entail? LO21.3
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Related Book For 
Microeconomics Principles, Problems, And Policies
ISBN: 9781259915727
21st Edition
Authors: Campbell McConnell
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