Solved

-If an Average Cost Pricing Rule Is Imposed on the Natural

Question 300

Multiple Choice

-If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then the firm's economic profit will be

A) $9 million.
B) $12 million.
C) $0, that is, the firm's owners make only a normal profit.
D) negative, that is, the firm incurs an economic loss.

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