Government price regulation

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    always leads to a deadweight loss in the market.
     alters the marginal revenue function and profit maximizing output level of the monopoly firm.
     leads to a deadweight loss in competitive market but can reduce deadweight loss in a monopoly market.
     Both 2 and 3.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Both 2 and 3.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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