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August 4, 2015

Homework Help: Economy Today

Posted by Debbie on Sunday, January 15, 2012 at 6:39pm.

Do total profits (A) decrease, (B) increase, or (C) stay the same when new technology reduces average
total costs (shifts ATC downward in Figure 26.2 ) in
(a) An unregulated natural monopoly?
(b) A price-regulated natural monopoly?
(c) A profit-regulated natural monopoly?

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