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The Figure Below Shows Revenue and Cost Curves of a Natural

Question 52

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm. Figure 12.1 The figure below shows revenue and cost curves of a natural monopoly firm. Figure 12.1 In the figure, D: Demand curve MR: Marginal revenue curve MC: Marginal cost curve ATC: Average total cost curve According to Figure 12.1, the price under perfect competition will be: A) P<sub>1</sub>. B) P<sub>3</sub>. C) P<sub>5</sub>. D) P<sub>4</sub>. E) P<sub>2</sub>. In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
According to Figure 12.1, the price under perfect competition will be:


A) P1.
B) P3.
C) P5.
D) P4.
E) P2.

Correct Answer:

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