Question

This firm is a natural monopoly. True False If the firm produces 68 units and charges $28 per unit, it will in the long run. Which quantity of output is consistent with price regulation.a. Trueb. False

Answer 1

True. This is because the curve of ATC shifted downward to show an increase in output. As the ATC curve moves downward, the quantity of goods increase while the price decreases. The quantity of goods produced is equivalent to 68 units which is consistent with the regulation of price. Price regulation is used to manage the effects of monopoly on the market system.

Step-by-step explanation:

True. This is because the curve of ATC shifted downward to show an increase in output. As the ATC curve moves downward, the quantity of goods increase while the price decreases. The quantity of goods produced is equivalent to 68 units which is consistent with the regulation of price. Price regulation is used to manage the effects of monopoly on the market system.