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Business, 14.04.2020 18:04 izabelllreyes

Which of the following statements is false? a. Average-cost pricing usually refers to setting a price for a natural monopoly firm that is equal to its ATC, thus guaranteeing the firm a normal profit. b. The public choice theory of regulation holds that regulators are seeking to do, and will do through regulation, what is in the best interest of the society at large. c. One of the unintended effects of profit regulation (in the form of guaranteeing the natural monopoly firm that it will always earn normal profit-nothing more and nothing less) is that the natural monopoly has no incentive to keep its costs down. d. An economist thinks that there are both benefits and costs to most (if not all) types of regulation.

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