laurennn.
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is a max p on a natural monopoly productively efficient, if so how?
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al131859
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(Original post by laurennn.)
is a max p on a natural monopoly productively efficient, if so how?
No. A monopoly is never efficient when profit max. Just use the diagram, and you will see it is not allocatively efficient due to P not being equal to MC, and is not productively efficient because AC does not equal MC.
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