Your textbook covered 4 possible ways to deal with a natural monopoly. Which approach would be best for consumers? Group of answer choices Regulators would force the monopolist to set its price equal to its marginal cost. Let the natural monopoly charge enough to cover its average costs and earn a normal rate of profit. Regulators would allow the monopolist to continue with no government regulation. Regulators would split the monopolist into two competing firms.
Your textbook covered 4 possible ways to deal with a natural monopoly. Which approach would be best for consumers? Group of answer choices Regulators would force the monopolist to set its price equal to its marginal cost. Let the natural monopoly charge enough to cover its average costs and earn a normal rate of profit. Regulators would allow the monopolist to continue with no government regulation. Regulators would split the monopolist into two competing firms.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Antitrust And Regulation
Section: Chapter Questions
Problem 10SQP
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Question
Your textbook covered 4 possible ways to deal with a natural monopoly . Which approach would be best for consumers?
Group of answer choices
Regulators would force the monopolist to set its price equal to its marginal cost.
Let the natural monopoly charge enough to cover its average costs and earn a normal rate of profit.
Regulators would allow the monopolist to continue with no government regulation.
Regulators would split the monopolist into two competing firms.
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