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21) Consider a natural monopoly that is operating at a level of output with falling average costs. If the regulator requires that the prime be
21) Consider a natural monopoly that is operating at a level of output with falling average costs. If the regulator requires that the prime be set equal to MC A) the demand curve would shift to the left B) the demand curve would shift to the right. ( the firm would operate al a loss and eventually go out of business. Di the firm whuld cam positive economic profits. B) shortages would result
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