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The imposition of socially optimal pricing can potentially result in an economic loss for a monopoly. In order to avoid the risk of an economic loss, the government sometimes regulates a monopoly by imposing the fair return price instead. Which of the following is definitely true for the monopoly if the government imposes a fair return price?

A

Price = Average Total Cost.

B

Price = Marginal Cost.

C

Marginal Revenue = Marginal Cost.

D

Price = Minimum Average Total Cost.

E

Marginal Cost = Average Total Cost.

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