Use the Following Table to Answer the Question : Table

Multiple Choice

Use the following table to answer the question : Table 15-3: shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price.
-In Figure 15-3,if the monopoly is forced to use the average-cost pricing policy,it would:

A) produce Q2 at a price P3 and make zero economic profit.
B) produce Q3 at a price P4 and make positive economic profit.
C) produce Q1 at a price P1 and make zero economic profit.
D) produce Q2 at a price P3 and make positive economic profit.