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 marginal- cost pricing.In this case,the firm would experience represented by the area .
A) losses; edbc
B) profits; edbc
C) profits; P2P3ad
D) losses; 0P2bQ2
E) losses; P1P2bc
Correct Answer:
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