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-Refer to the Diagram Above and Assume the Case of Cost-Plus

Question 28

Multiple Choice

-Refer to the diagram above and assume the case of cost-plus regulation.At equilibrium,with no subsidy,the firm's profit is

A) (P3 - P2) .
B) (P3 - P2) Q3.
C) (P2 - (ATC at Q2) ) Q2.
D) (P1 - P3) Q2.
E) (P1 - P2) Q3.

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