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(Solved): If a regulated natural monopoly (an electric utility company) suddenly raised its price by 500 perce ...



If a regulated natural monopoly (an electric utility company) suddenly raised its price by 500 percent against one homeowner that had a very inelastic demand curve but at the same time lowered the price to all other 1,000 houses in that neighborhood that had elastic demand curves, then they could be charged with "Price Discrimination" by state regulators especially if it cost the monopoly the same to serve all the homeowners.



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