Consider a cable TV company which is subject to an average-cost pricing regulation. If the number of subscribers decreases:

A. the company will have to operate at a smaller profit unless it suffers an economic loss.
B. the company will have to charge a relatively low price as the demand curve facing the firm shifts to the left.
C. the company will charge more per customer as its average cost increases.
D. None of these


Answer: C

Economics

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