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… of the rationales for regulating can be described as instances of Monopoly describes the position in which … seller produces for the entire i Where … occurs, the market «fails» because competition A firm will earn a windfall profit (sometimes called an «economic rent» or excess profit) where it finds a source of supply significantly … than The reason for regulating externalities (or «spillovers») is that the price of a product does reflect the true cost to society of producing that good, and exc