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.In the absence of any government regulation, the profit-maximizing owners of this firm will produce ________ units and charge a price of ________.

A) Q₀ units; P₀
B) Q₂ units; P₂
C) Q₁ units; P₄
D) Q₃ units; P₃