9. It has been proposed that natural monopolists should be allowed to determine their profit-maximizing outputs and

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9. It has been proposed that natural monopolists should be allowed to determine their profit-maximizing outputs and prices and then government should tax their profits away and distribute them to consumers in proportion to their purchases from the monopoly. Is this proposal as socially desirable as requiring monopolists to equate price with marginal cost or average total cost? LO12.7

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