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Under incentive regulation, if a regulated natural monopoly achieves average total cost lower than the regulated price, it can O trade the extra profits for
Under incentive regulation, if a regulated natural monopoly achieves average total cost lower than the regulated price, it can O trade the extra profits for other regulatory leniencies O be exposed to a higher tax. decrease its output. keep the extra profits O increase its output
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Principles of Economics
Authors: Fred M. Gottheil
7th edition
978-1133962069, 9781285064444, 1133962068, 1285064445, 978-1285064437
