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Figure 15-15 Figure 15-15 Shows the Cost and Demand

Question 68

Multiple Choice

Figure 15-15 Figure 15-15 Figure 15-15 shows the cost and demand curves for the Erickson Power Company. -Refer to Figure 15-15. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________. A) P<sub>1</sub>; Q<sub>4</sub> B) P<sub>2</sub>; Q<sub>3</sub> C) P<sub>2</sub>; Q<sub>2</sub> D) P<sub>3</sub>; Q<sub>2</sub> Figure 15-15 shows the cost and demand curves for the Erickson Power Company.
-Refer to Figure 15-15. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________.


A) P1; Q4
B) P2; Q3
C) P2; Q2
D) P3; Q2

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