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-Refer to the Above Figure

Question 283

Multiple Choice

-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to A) marginal cost, which is P1. B) marginal cost, which is P2. C) average cost, which is P3. D) average cost, which is P4.
-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to


A) marginal cost, which is P1.
B) marginal cost, which is P2.
C) average cost, which is P3.
D) average cost, which is P4.

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