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Natural Monopoly: The given table depicts the cost and demand structure of a natural monopoly faces.

2327_natural monopoly.jpg

Q1. Compute the total revenue, marginal revenue, marginal cost and average total cost of this natural monopoly.

Q2. Find out the profit maximizing output and price for the natural monopoly if the government doesn’t regulate it?

Q3. Supposing total costs comprise all implicit costs (comprising a fair rate of return for shareholders), what price and output will the government set up for the natural monopoly.

Q4. describe the characteristics or features of a natural monopoly and how a natural monopoly distinct from the other monopolies?

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M910039

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