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Question: it is unrealistic to regulate a natural monopoly at marginal...

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It is unrealistic to regulate a natural monopoly at marginal cost pricing because

marginal cost pricing ends up having the natural monopoly firm earn zero economic profits.
the government is not allowed to regulate markets.
firms do not need to follow regulations from the government.
regulating a market causes more deadweight loss.
with this type of regulation, the firm will want to shut down, and that outcome is not desirable for society.
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