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When the government picks a price for the natural monopolist where the demand curve intersects the monopolist’s long-run average cost curve, it is known as;

Respuesta :

Answer:

Average-cost pricing

Explanation:

Governments use average-cost pricing as a method of regulating pricing in the market. The reason for this is that monopolists often produce a less-than-optimal quantity at high pricing. The effects of this regulation could include: increased production at lower pricing, more efficient resource allocation and normal profits for the monopolist.

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