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-In the Above Figure, If the Natural Monopoly Is Regulated

Question 237

Multiple Choice

-In the above figure, if the natural monopoly is regulated using a marginal cost pricing rule, then the firm will A) produce 8 million units and make an economic profit of $24 million. B) produce 12 million units and make zero economic profit. C) produce 16 million units and incur an economic loss of $64 million. D) produce 16 million units and make zero economic profit.
-In the above figure, if the natural monopoly is regulated using a marginal cost pricing rule, then the firm will


A) produce 8 million units and make an economic profit of $24 million.
B) produce 12 million units and make zero economic profit.
C) produce 16 million units and incur an economic loss of $64 million.
D) produce 16 million units and make zero economic profit.

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