One Way the Government Could Regulate a Natural Monopoly at the Marginal

question 1

Multiple Choice

One way the government could regulate a natural monopoly at the marginal cost level would be to

• A) allow the natural monopoly to produce at the profit-maximizing point.
• B) tax the monopoly.
• C) place a tariff on the monopoly.
• D) give the monopoly a patent.
• E) subsidize the monopoly.

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Definitions:

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