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精编密训教材，分阶快递。1. Customers with higher price elasticity of demand have more choices of substitute products.
2. No opportunity for reselling.
3. The price differences are not based on cost differences.
4. The firm is a price-maker.
●Types of monopolies and their potential regulation
·Natural Monopoly
Certain industries could best operate as monopolies in order to create a power authority or a public service commission. E.g. Electricity.
·Regulated Monopoly
Price at the intersection of ATC and D. This price will cover average costs.
Fair rate return: the utility firm needs to get a return on its investment at least equal to what investors could receive elsewhere at the same level of risk.
·Unregulated Monopoly
Price at the highest price – the monopolist is a profit maximizer.
·Other Regulated Monopolies
Socially optimal price: the intersection of D and MC. Since the price is below t
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