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1 February, 10:11

True or false: without government regulation, natural monopolies always earn zero profit in the long run.

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  1. 1 February, 10:20
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    False. Without government regulation, natural monopolies always earn zero profit in the long run. Natural monopolies can earn positive profit without government regulation. Though they don't always earn profit, they also don't always earn zero profit either. A natural monopoly exists because of a high fixed or start-up cost to conduct business within a certain industry.
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