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pixiedust7891 pixiedust7891
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A year ago
Consider a regulated natural monopoly, such as an electricity distribution company, that faces falling long-run average costs. If it is forced to price its output at average cost it will provide

▸ less output than what is socially optimal.

▸ more output than can be absorbed by the market.

▸ the socially optimal amount of output.

▸ so little output that there will be a shortage.

▸ more output than what is socially optimal.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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fujiokifujioki
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A year ago
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