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johndoris johndoris
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2 years ago
Consider the following information for a regional cable television service provider that is a natural monopoly and has a U-shaped long-run average cost curve. (Assume the service provided is basic cable and units are household connections.)
- minimum LRAC = $9.00 per month
- minimum efficient scale = 2 million units
- current output = 2.3 million units
- LRAC at current output = $10.25 per month
If this firm is currently being regulated and is following an average-cost pricing policy, the price of the service is ________ per month.

▸ less than $9.00

▸ $9.00

▸ between $9.00 and $10.25

▸ $10.25

▸ higher than $10.25
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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PmochPmoch
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2 years ago
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johndoris Author
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2 years ago
Good timing, thanks!
Jadakiss
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Yesterday
You make an excellent tutor!
shelbycox
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2 hours ago
Thank you, thank you, thank you!
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