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-The Figure Above Shows the Demand Curve (D) Faced by Visual

Question 488

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-The figure above shows the demand curve (D) faced by Visual, Inc., a cable TV company, and the firm's marginal revenue (MR) , marginal cost (MC) , and average cost (LRAC) curves. If Visual is regulated according to an average cost pricing rule, there will be A) a deadweight loss of $6 million per month. B) a deadweight loss of $24 million per month. C) a deadweight loss of $12 million per month. D) no deadweight loss.
-The figure above shows the demand curve (D) faced by Visual, Inc., a cable TV company, and the firm's marginal revenue (MR) , marginal cost (MC) , and average cost (LRAC) curves. If Visual is regulated according to an average cost pricing rule, there will be


A) a deadweight loss of $6 million per month.
B) a deadweight loss of $24 million per month.
C) a deadweight loss of $12 million per month.
D) no deadweight loss.

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