Change: Because unregulated monopolies seek to maximize profits, output is restricted so that price is set higher than what everyone can afford. However, some monopolies control products or services that are considered basic neccesities for human survival. In order to get companies to produce enough of a product for everyone, governments   View changes from previous version. (Word count: 330)

Change: price (which is also allocative effiency) : P=MC: To achieve allocative efficiency, a firm should produce so that P=MC. This way, they maximize profit or minimize loss. The monopoly may have lossesFair-return price: P=ATC: Regulations to price so that monopolies do not become bankrupt Utility owners   View changes from previous version. (Word count: 166)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 161)

Change: Although a fair return price (P = ATC) allows the monopolist to cover costs, it only partially resolves the underallocation of resources that the unregulated monopoly price would foster. The fair return price does not acheive socially optimat output Despite this, the price regulation is   View changes from previous version. (Word count: 117)

Change: Created by welkerjason Oct 28 2007, 3:40 AM EDT for: no reason given