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If a Natural Monopolist Were to Sell at the Price

Question 63

Multiple Choice

If a natural monopolist were to sell at the price where marginal cost equals demand,then it would be earning


A) zero economic profits,like a competitive firm in the long-run.
B) negative profits and would not be able to survive.
C) positive profits but not would not need to worry about government intervention to regulate it.
D) positive profits but would still need to worry about possible government intervention to regulate it.

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