The diagram below shows cost and revenue curves for a natural monopoly producing electricity.Price is dollars per kilowatt hour and quantity is kilowatt hours per day.
FIGURE 12- 7
-Refer to Figure 12- 7.If this firm were unregulated and profit maximizing,its profit would be per day.
A)$60 000
B)$110 000
C)$0
D)$120 000
E)$10 000

Question

The diagram below shows cost and revenue curves for a natural monopoly producing electricity.Price is dollars per kilowatt hour and quantity is kilowatt hours per day.
  FIGURE 12- 7
-Refer to Figure 12- 7.If this firm were unregulated and profit maximizing,its profit would be per day.
A)$60 000 
B)$110 000 
C)$0 
D)$120 000 
E)$10 000

Quizplus · Accepted Answer

The Answer is E

The Diagram Below Shows Cost and Revenue Curves for a Natural