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Economics

Consider a subway company whose cost function is given by C(T) - 1000 + T. Due to the government regulation, this company must set the fare per passenger at the marginal cost (MC pricing). Is this pricing efficient? Would this company run the business under this regulation? Explain your answer and suggest a possible policy to solve the problem if applicable.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91997262

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