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Why is the price of internet not Pareto efficient? Group of answer choices -An internet provider...

Why is the price of internet not Pareto efficient?

Group of answer choices

-An internet provider is a natural monopoly

-Because internet providers do not profit maximize

-Because internet access is a right

-Because internet access is over-regulated

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Answer #1

Ans) the correct option is a) An internet provider is a natural monopoly

Internet providers create natural monopoly because of economies of scale meaning a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.

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