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Use the Figure Below to Answer the Following Questions

Question 43

Multiple Choice

Use the figure below to answer the following questions. Use the figure below to answer the following questions. Figure 12.3.4 -Consider the natural monopoly depicted in Figure 12.3.4.Total surplus is at a maximum when quantity is A) Q<sub>1</sub> and price is P<sub>1</sub>. B) Q<sub>1</sub> and price is P<sub>3</sub>. C) Q<sub>2</sub> and price is P<sub>2</sub>. D) Q<sub>3</sub> and price is P<sub>0</sub>. E) Q<sub>4</sub> and price is 0. Figure 12.3.4
-Consider the natural monopoly depicted in Figure 12.3.4.Total surplus is at a maximum when quantity is


A) Q1 and price is P1.
B) Q1 and price is P3.
C) Q2 and price is P2.
D) Q3 and price is P0.
E) Q4 and price is 0.

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