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The Diagram Below Shows the Market Demand Curve and the Cost

Question 71

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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 this firm is being regulated using a policy of marginal-cost pricing.In this case,the firm would experience ________ represented by the area ________. A) losses; P<sub>1</sub>P<sub>2</sub>bc B) losses; edbc C) losses; 0P<sub>2</sub>bQ<sub>2</sub> D) profits; P<sub>2</sub>P<sub>3</sub>ad E) profits; edbc FIGURE 12-6
-Refer to Figure 12-6.Suppose this firm is being regulated using a policy of marginal-cost pricing.In this case,the firm would experience ________ represented by the area ________.


A) losses; P1P2bc
B) losses; edbc
C) losses; 0P2bQ2
D) profits; P2P3ad
E) profits; edbc

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