Business
Business, 09.12.2019 20:31, LoveSchool5617

Suppose that your state is considering a law that would force all monopolies to charge no more than their average total costs (atc) of production. which of the following statements correctly explains to your legislator the pros and cons of this approach? instructions: you may select more than one answer. click the box with a check mark for correct answers and click to empty the box for the wrong answers. a. pro: this will reduce deadweight loss by increasing production quantity. b. unchecked con: the monopolist will have an incentive to overstate costs. c. unchecked pro: the monopolist will have an incentive to lower costs. d. unchecked con: consumer surplus is reduced as producers will increase production and increase price. e. unchecked pro: this will increase the profit earned by the monopolist. f. unchecked con: it is very hard to accurately determine what atc truly is. unchecked

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