If the government regulates a natural monopoly by forcing the firm to
If the government regulates a natural monopoly by forcing the firm to set price equal to marginal cost,
A) the firm will earn a negative economic profit.
B) the firm will earn zero economic profit.
C) the firm will earn a fair economic profit.
D) the firm will earn a positive and large economic profit.
ANSWER
A
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.