A regulation that requires a natural monopoly to set a price equal to its average total cost

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A regulation that requires a natural monopoly to set a price equal to its average total cost is similar to imposing a tax on the market because the regulated price is the efficient price, and the regulation a dead weight loss.

a above, creates b above, does not create c below, creates d below, does not create

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Principles Of Microeconomics [Australia And New Zealand Edition]

ISBN: 9781337408066

6th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N. Gregory Mankiw

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Question Posted: Nov 02, 2024 04:01 AM

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A regulation that requires a natural monopoly to set a price equal to its average total cost

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Principles Of Microeconomics [Australia And New Zealand Edition]

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