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Author Question: For a natural monopoly, if price is set equal to marginal cost then the firm incurs an economic ... (Read 110 times)

Ebrown

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on: Jun 29, 2018
For a natural monopoly, if price is set equal to marginal cost then the firm incurs an economic loss.
 
  Indicate whether the statement is true or false

Question 2

Using average cost pricing to regulate a natural monopoly creates a deadweight loss.
 
  Indicate whether the statement is true or false


zacnyjessica

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


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Ebrown

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Reply #2 on: Jun 29, 2018
Correct answers!


zacnyjessica

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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