A monopoly firm operates with declining average cost.If regulators impose marginal cost pricing, the market will
A)remain a monopoly but behave like a perfectly competitive industry.
B)become perfectly competitive.
C)be entered by additional firms but will not necessarily become perfectly competitive.
D)maximize consumer surplus.

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The Answer of A monopoly firm operates with declining average cost.If regulators impose marginal cost pricing, the market will
A)remain a monopoly but behave like a perfectly competitive industry.
B)become perfectly competitive.
C)be entered by additional firms but will not necessarily become perfectly competitive.
D)maximize consumer surplus.

A Monopoly Firm Operates with Declining Average Cost