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To regulate a natural monopoly, the regulatory can impose a price ceiling where: Marginal cost and demand line intersect marginal cost intersects marginal revenue

 

To regulate a natural monopoly, the regulatory can impose a price ceiling where: Marginal cost and demand line intersect marginal cost intersects marginal revenue At the midpoint on the demand line None of the above

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ANSWER B Marginal cost intersects marginal revenue This means looking at the additional cost versus ... blur-text-image

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