It Must Always Be True That If Regulator Forces a Natural

question 17

Multiple Choice

It must always be true that if regulator forces a natural monopolist to produce where __________,the firm will earn __________.

• A) MR = MC;an economic profit
• B) MR = MC;an economic loss
• C) P = MC;zero economic profit
• D) P = MC;an economic loss
• E) P = AC;an economic loss

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