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Why does the government change the lowest price rule for a natural monopoly to Price=Average Total Cost as compared to Price=Marginal Cost for a regular
Why does the government change the lowest price rule for a natural monopoly to Price=Average Total Cost as compared to Price=Marginal Cost for a regular monopoly? It wants the natural monopoly to make more profits Because of government corruption Because typically, a natural monopoly would make economic losses if the Price=Marginal Cost rule is applied Because a natural monopolist can bargain for a higher price than a regular monopolist
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