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Exhibit 15-4 If Regulators Allow the Natural Monopolist in Exhibit

Question 176

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Exhibit 15-4 Exhibit 15-4 If regulators allow the natural monopolist in Exhibit 15-4 to earn only a normal profit, it will result in an increase in consumer surplus compared to the profit maximizing result. If regulators allow the natural monopolist in Exhibit 15-4 to earn only a normal profit, it will result in an increase in consumer surplus compared to the profit maximizing result.

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