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henry11 henry11
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A year 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 = 1.7 million units
- current LRAC = $10.25 per month
Suppose the firm is currently being regulated and is required to follow a marginal-cost pricing policy. The price of the service will be ________ per month.

▸ $10.25

▸ $9.00

▸ higher than $10.25

▸ lower than $10.25

▸ lower than $9.00
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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chelzchelz
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A year ago
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henry11 Author
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A year ago
Smart ... Thanks!
SlimyPencil
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Yesterday
Just got PERFECT on my quiz
bbbbbbbh
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2 hours ago
this is exactly what I needed
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