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If the Regulation of a Monopoly Results in a Price

Question 25

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If the regulation of a monopoly results in a price equal to marginal cost but the price is below average total cost:
A.the firm can still make an economic profit.
B.the firm will earn only a zero economic profit.
C.efficiency in allocation will be less.
D.the firm will require subsidization or it will go out of business.

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the firm will requir...

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