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A regulated monopoly that faces rising long-run costs (at its current level of output) and which is ...

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A regulated monopoly that faces rising long-run costs (at its current level of output) and which is ...

A regulated monopoly that faces rising long-run costs (at its current level of output) and which is forced to price its output at average cost will provide

▸ more output than what can be absorbed by the market.

▸ so little output that there will be a shortage.

▸ less output than what is socially optimal.

▸ more output than what is socially optimal.

▸ the socially optimal amount of output.

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Microeconomics

Edition: 17^th

Author: Ragan

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Helped a lot

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