Figure 15-16 Figure 15-16 Shows the Market Demand and Cost Curves Facing

Multiple Choice

Figure 15-16

Figure 15-16 shows the market demand and cost curves facing a natural monopoly.
-Refer to Figure 15-16.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________.

A) Q₁ units; P₄
B) Q₁ units; P₁
C) Q₅ units; P₃
D) Q₃ units; P₄