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Exhibit 25-1 Refer to Exhibit 25-1. What Price Is Charged If Marginal-Cost

Question 60

Question 60

Multiple Choice

Exhibit 25-1
Exhibit 25-1 Refer to Exhibit 25-1. What price is charged if marginal-cost price regulation is imposed on the natural monopoly firm? A) P<sub>1</sub> B) P<sub>2</sub> C) P<sub>3</sub> D) a price below P<sub>2</sub> and above P<sub>1</sub>
Refer to Exhibit 25-1. What price is charged if marginal-cost price regulation is imposed on the natural monopoly firm?

A) P₁
B) P₂
C) P₃
D) a price below P₂ and above P₁

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