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Exhibit 15-5 Consider the Natural Monopoly Depicted in Exhibit

Question 139

Multiple Choice

Exhibit 15-5 Exhibit 15-5 Consider the natural monopoly depicted in exhibit 15-5.If regulators set the price so as to achieve the socially efficient level of output, how much profit will the monopolist earn? A) no profit, the firm will lose about $28 B) no profit, the firm will lose about $12 C) no profit, the firm will roughly break-even D) $12 of profit E) $28 of profit Consider the natural monopoly depicted in exhibit 15-5.If regulators set the price so as to achieve the socially efficient level of output, how much profit will the monopolist earn?


A) no profit, the firm will lose about $28
B) no profit, the firm will lose about $12
C) no profit, the firm will roughly break-even
D) $12 of profit
E) $28 of profit

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