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Question
If an authoritarian agency follows a rule of normal cost pricing, then an ordinary monopolist will
Options:
A .  be forced to shut down.
B .  produce more than it would if it were unregulated.
C .  earn economic profit greater than zero.
D .  earn more profit that it would if it were unregulated.
Answer: Option B
Answer: (b).produce more than it would if it were unregulated.

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