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DaniilM [7]
3 years ago
11

The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be p

ositive. economic profits will be negative. it is not productively efficient. it is not allocatively efficient.
Business
1 answer:
ASHA 777 [7]3 years ago
7 0

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

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