Exhibit 15-5 The natural monopoly depicted in exhibit 15-5, if unregulated would produce how much output?

Name: Exhibit 15-5 The natural monopoly depicted in exhibit 15-5, if unregulated would produce how much output?
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Exhibit 15-5  The natural monopoly depicted in exhibit 15-5, if unregulated would produce how much output?

Quizplus · Accepted Answer

The natural monopoly would produce where marginal cost equals marginal revenue, which is at the intersection of the market demand curve with the marginal cost curve. In this case, it occurs at an output of 3 units.

Exhibit 15-5 the Natural Monopoly Depicted in Exhibit 15-5