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The Diagram Below Shows the Market Demand Curve and the Cost

Question 29

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The diagram below shows the market demand curve and the cost curves for a single firm. The diagram below shows the market demand curve and the cost curves for a single firm. FIGURE 12-6 -Refer to Figure 12-6.Suppose the firm is being regulated using a policy of average-cost pricing.The resulting price and output would be A) P<sub>1</sub> and Q<sub>2</sub>. B) P<sub>1</sub> and Q<sub>1</sub>. C) P<sub>2</sub> and Q<sub>2</sub>. D) P<sub>3 </sub>and Q<sub>1</sub>. E) P<sub>3</sub> and Q<sub>2</sub>. FIGURE 12-6
-Refer to Figure 12-6.Suppose the firm is being regulated using a policy of average-cost pricing.The resulting price and output would be


A) P1 and Q2.
B) P1 and Q1.
C) P2 and Q2.
D) P3 and Q1.
E) P3 and Q2.

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