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Refer to the Diagram for a Natural Monopolist

Question 399

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Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P₂, the monopolist would A) produce output Q₁ and realize an economic profit. B) produce output Q₃ and realize an economic profit. C) close down in the short run. D) produce output Q₃ and realize a normal profit. Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P₂, the monopolist would


A) produce output Q₁ and realize an economic profit.
B) produce output Q₃ and realize an economic profit.
C) close down in the short run.
D) produce output Q₃ and realize a normal profit.

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