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-If a Marginal Cost Pricing Rule Is Imposed on the Natural

Question 523

Multiple Choice

-If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will A) incur an economic loss. B) make zero economic profit, that is, its owners make a normal profit. C) make an economic profit of $4 million. D) make an economic profit of $16 million.
-If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will


A) incur an economic loss.
B) make zero economic profit, that is, its owners make a normal profit.
C) make an economic profit of $4 million.
D) make an economic profit of $16 million.

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