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-Refer to the Diagram Above

Question 143

Multiple Choice

-Refer to the diagram above.Assume that the regulator sets price where price equals marginal cost.Then,the government must be prepared to A) force the monopolist to accept losses. B) impose a higher tax on the monopolist. C) subsidize the monopolist. D) increase consumer surplus. E) increase production of the good in question.
-Refer to the diagram above.Assume that the regulator sets price where price equals marginal cost.Then,the government must be prepared to


A) force the monopolist to accept losses.
B) impose a higher tax on the monopolist.
C) subsidize the monopolist.
D) increase consumer surplus.
E) increase production of the good in question.

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