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If a state government regulatory agency like the California Public Utilities Commisssion, which controls PG&E sets the monopoly price to the point where Price =

If a state government regulatory agency like the California Public Utilities Commisssion, which controls PG&E sets the monopoly price to the point where Price = Marginal Cost, then this will not be a problem for PG&E. When Price = Marginal Cost, the monopoly can still generate healthy profits by itself and they won't need any extra financial help from the government

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