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Business, 16.11.2020 16:30 naseral7elo

If the government regulates a natural monopolist to produce the allocatively efficient level of output, it will require the monopolist to set a price that is: a. equal to its marginal cost and grant a subsidy to cover the loss

b. equal to its average total cost and levy a tax on the excess profit

c. greater than its marginal cost and levy a tax on the excess profit

d. greater than its marginal cost but that minimizes the deadweight loss

e. greater than its average total cost but that minimizes the deadweight loss

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