The diagram below shows the market demand curve and the cost curves for a single firm.
FIGURE 12- 6
-Refer to Figure 12- 6.Suppose this firm is being regulated using a policy of average- cost pricing.In this case,economic profits to the firm are represented by the area
A) 0P3aQ1.
B) P1P2bc.
C) P2P3ad.
D) P2P3ab.
E) There are no economic profits.
Correct Answer:
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