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Antitrust Laws and Government Regulation of Monopolies
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Antitrust Laws and Government Regulation of Monopolies
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12. Monopoly / Antitrust Laws and Government Regulation of Monopolies / Problem 7
Problem 7
What is a potential downside of fair return pricing?
A
It guarantees a monopoly's long-term profitability.
B
It eliminates all forms of competition.
C
It can lead to deadweight loss and reduce profit incentives.
D
It maximizes both allocative and productive efficiency.
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