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Question: this graph is a single price profit maximizing monopolist a...

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This graph is a single price profit maximizing monopolist. a. Why would the government attempt to regulate the price that this monopoly sets? Why can't they simply break the firm up into several smaller firms? b. What price would the government set if they wanted to ensure an efficient market outcome? Why is this difficult to maintain? Explain. c. If the outcome in (b) is impractical what pricing scheme would you recommend? Why?

Price 10 8 6 5253 3 25 ATC MC 1 2 5 6 Quaxtity 7 4 8 9 7:5 10

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