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The graph shows the case of an unregulated natural monopolist. Please label the appropriate areas. Answer Bank profit consume
The graph shows the case of an unregulated natural monopolist. Please label the appropriate areas. Answer Bank profit consume
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Answer #1

The orange triangle is consumers' surplus and the blue rectangle is profit for the producer.

If the government insists that the producer charge only the cost, then the price will change to P2 and quantity to Q2, with zero super normal profit for the producer.

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