a. A social cost is applied to the monopolist market structure. Why does this occur? If the gains producers achieve from being a monopolist are provided to consumers, would the social cost of the monopolist be eliminated?  b. Describe the two problems that arise when regulators tell a natural monopoly that it must set a price equal to marginal cost.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter10: Monopoly
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a. A social cost is applied to the monopolist market structure. Why does this occur? If the gains producers achieve from being a monopolist are provided to consumers, would the social cost of the monopolist be eliminated? 

b. Describe the two problems that arise when regulators tell a natural monopoly that it must set a price equal to marginal cost. 

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