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Question 194

Multiple Choice

Figure 9.13 Figure 9.13 Figure 9.13 shows the market demand and cost curves facing a natural monopoly. -Refer to Figure 9.13.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment, the firm will produce an output of ________ and charge a price of ________. A) Q<sub>1</sub> units; P<sub>4</sub> B) Q<sub>1</sub> units; P<sub>1</sub> C) Q<sub>5 </sub>units; P<sub>3</sub> D) Q<sub>3</sub> units; P<sub>3</sub> Figure 9.13 shows the market demand and cost curves facing a natural monopoly.
-Refer to Figure 9.13.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment, the firm will produce an output of ________ and charge a price of ________.


A) Q1 units; P4
B) Q1 units; P1
C) Q5 units; P3
D) Q3 units; P3

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