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It Must Always Be True That If Regulator Forces a Natural

Question 17

Multiple Choice

It must always be true that if regulator forces a natural monopolist to produce where __________,the firm will earn __________.

A) MR = MC;an economic profit
B) MR = MC;an economic loss
C) P = MC;zero economic profit
D) P = MC;an economic loss
E) P = AC;an economic loss

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