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Consider a regulated natural monopoly with an initial price {equal to average cost) of $3 per unit. Suppose the demand for the monopolist's product increases.

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Consider a regulated natural monopoly with an initial price {equal to average cost) of $3 per unit. Suppose the demand for the monopolist's product increases. What wl happen to the price? How does this differ from the effects of an increase in demand for a product produced in a price taker market? [2 points}

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