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Figure 13.9 Figure 13.9 Shows the Cost and Demand Curves for the and Demand

Question 8

Multiple Choice

Figure 13.9
Figure 13.9 Figure 13.9 shows the cost and demand curves for the Erickson Power Company. -Refer to Figure 13.9.If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________. A) P₁; Q₄ B) P₂; Q₃ C) P₂; Q₂ D) P₃; Q₂
Figure 13.9 shows the cost and demand curves for the Erickson Power Company.
-Refer to Figure 13.9.If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________.


A) P₁; Q₄
B) P₂; Q₃
C) P₂; Q₂
D) P₃; Q₂

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