Forcing a natural monopoly to charge P = MC will not work. Indicate w

Forcing a natural monopoly to charge P = MC will not work.

Indicate whether the statement is true or false

 

ANSWER

True . Since marginal cost is below average cost for a natural monopoly this would be equal to force the firm to incur a loss. This is not possible.

 

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00