Business, 28.08.2021 01:30 chanthonymjones

Suppose that your state is considering a law that would force all monopolies to charge the efficient price that would prevail if the market were competitive. Which of the following statements explain to your legislator why the state will have to subsidize natural monopolies if this law goes into effect? a. Marginal cost (MC) would be less than average total cost (ATC) at the new quantity level.
b. Average total cost (ATC) would be above price at the efficient quantity.
c. A natural monopolist would now earn a normal profit.
d. The efficient price will equal marginal cost (MC).
e. The efficient price will equal marginal revenue (MR).

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