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An Unregulated Natural Monopoly

Question 62

Multiple Choice

An unregulated natural monopoly


A) could produce output at higher costs than two firms could if it supplied all the quantity that buyers would take off the market.
B) will charge a price equal to marginal cost.
C) would produce efficiently if it behaved as a normal profit-maximizing monopoly.
D) will likely force society to face a deadweight loss.
E) will charge a price below marginal cost.

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