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Business, 16.11.2020 16:30 naseral7elo
If the government regulates a natural monopolist to produce the allocatively efficient level of output, it will require the monopolist to set a price that is:
a. equal to its marginal cost and grant a subsidy to cover the loss
b. equal to its average total cost and levy a tax on the excess profit
c. greater than its marginal cost and levy a tax on the excess profit
d. greater than its marginal cost but that minimizes the deadweight loss
e. greater than its average total cost but that minimizes the deadweight loss
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Answers: 3
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