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Question 344

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Use the following to answer questions:
Figure: Water Works Use the following to answer questions: Figure: Water Works -(Figure: Water Works) Look at the figure Water Works, which describes a small town's water works, a natural monopoly. If regulators allow the water works to charge the price that covers average total costs, consumer surplus will be: A) $1,600. B) $1,400. C) $1,000. D) $2,812.50.
-(Figure: Water Works) Look at the figure Water Works, which describes a small town's water works, a natural monopoly. If regulators allow the water works to charge the price that covers average total costs, consumer surplus will be:


A) $1,600.
B) $1,400.
C) $1,000.
D) $2,812.50.

Correct Answer:

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