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The Following Figure Shows the Average Cost [AC],marginal Cost [MC],and

Question 16

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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   -In Figure 15-3,under marginal-cost pricing,the monopoly would earn: A) negative economic profit equal to P<sub>3</sub>CBP<sub>2</sub>. B) positive economic profit equal to P<sub>2</sub>BQ<sub>2</sub>O. C) negative economic profit equal to FBQ<sub>2</sub>Q<sub>1</sub>. D) positive economic profit equal to FCQ<sub>2</sub>Q<sub>1</sub>.
-In Figure 15-3,under marginal-cost pricing,the monopoly would earn:


A) negative economic profit equal to P3CBP2.
B) positive economic profit equal to P2BQ2O.
C) negative economic profit equal to FBQ2Q1.
D) positive economic profit equal to FCQ2Q1.

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