Suppose the government is considering how to regulate a monopolist. An economist argues that the price should be regulated to maximize total welfare. The monopolist argues that the price should be regulated so that it can just cover all of its opportunity costs. Are they basically arguing the same point? How do they differ?

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The Answer of Suppose the government is considering how to regulate a monopolist. An economist argues that the price should be regulated to maximize total welfare. The monopolist argues that the price should be regulated so that it can just cover all of its opportunity costs. Are they basically arguing the same point? How do they differ?

Suppose the Government Is Considering How to Regulate a Monopolist