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1.- Suppose a scenario of a natural monopoly (decreasing long-term in the entire range of market demand) and the State decides to regulate it through

1.- Suppose a scenario of a natural monopoly (decreasing long-term in the entire range of market demand) and the State decides to regulate it through a pricing according to marginal costs. What effect can be caused for the monopolist who will not be willing to remain in the long term and who will force the State to commit to a subsidy or a two-part rate structure?

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