Author Question: If the local cable TV company is a natural monopoly and required by regulators to set its price ... (Read 85 times)

saraeharris · **on:** Jun 29, 2018

If the local cable TV company is a natural monopoly and required by regulators to set its price equal to marginal cost, there is a deadweight loss in the market and the firm might need a government subsidy to survive.

Indicate whether the statement is true or false

Question 2

If the local cable TV company is a natural monopoly and required by regulators to set its price equal to marginal cost, it makes zero profit and produces the efficient level of output.

Indicate whether the statement is true or false