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MMLU / If the government wants to establish a socially optimal price for a natural…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

If the government wants to establish a socially optimal price for a natural monopoly, it should select the price at which

choices

  1. average revenue equals zero
  2. marginal revenue equals zero
  3. the marginal cost curve intersects the demand curve
  4. the average total cost curve intersects the demand curve

subject

high_school_microeconomics

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Source and history

Official source

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