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(C) Consider a firm offering an online streaming service with no fixed cost and a constant marginal cost. Clever econometric analysis reveals that the price

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(C) Consider a firm offering an online streaming service with no fixed cost and a constant marginal cost. Clever econometric analysis reveals that the price charged by this firm is below its marginal cost. Is this a concern for a regulator, and what should the regulator do in response? Make sure you provide economic intuition for your answer using content studied in the unit of study. (10 marks)

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