Multiple Choice
Suppose a monopolist has positive fixed costs and constant marginal costs.If the government regulates a monopoly's price to marginal cost,in the long run:
A) the monopolist will earn a profit if ATC > MC.
B) the monopolist will exit the industry.
C) the monopolist will earn a profit if ATC > P.
D) the monopolist will earn zero profits.
Correct Answer:

Verified
Correct Answer:
Verified
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