Multiple Choice
The following figure shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price.
Figure 15-3 ![The following figure shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price. Figure 15-3 -Refer to Figure 15-3.If the firm practices marginal-cost pricing,the equilibrium price would be _____. A) P<sub>1</sub> B) P<sub>2</sub> C) P<sub>3</sub> D) P<sub>4</sub>](https://d2lvgg3v3hfg70.cloudfront.net/TB1825/11ea77e2_d74e_2b8e_91bf_4981461b2b31_TB1825_00_TB1825_00_TB1825_00.jpg)
-Refer to Figure 15-3.If the firm practices marginal-cost pricing,the equilibrium price would be _____.
A) P1
B) P2
C) P3
D) P4
Correct Answer:
Verified
Correct Answer:
Verified
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