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san4es73 [151]
4 years ago
8

If the government requires a natural monopoly to price at marginal cost, Group of answer choices monopoly firms will earn zero e

conomic profits because the price of the good equals the cost of producing that good. monopoly firms will operate at a loss because P < AC. more firms will be able to enter the market. producer surplus will increase because quantity supplied is greater.
Business
1 answer:
MissTica4 years ago
3 0

Answer:

monopoly firms will operate at a loss because P < AC

Explanation:

A monopoly is when there is only one firm operating in an industry.

A natural monopoly exists either because of high start-up costs or high economies of scale.

A natural monopoly has a decreasing average cost for some output. When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to  marginal cost, which lies below the average cost, the monopoly would incur losses.

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Explanation:

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Explanation:

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Lana71 [14]

Answer:

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3 years ago
On May 1, Tango Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc.
beks73 [17]

Answer:

This gives a net losses from discontinued of operations of $13.5m

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Explanation:

Kindly find attached spreadsheet showing of the computations from US GAAP's perspective

Mind the use of formulas highlighted before each calculation

Download xlsx
3 0
3 years ago
Read 2 more answers
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