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.Suppose this firm is being regulated using a policy of marginal-cost pricing.In this case,economic profits are equal to
A)-$15 000.
B)-$28 000.
C)$0.
D)$90 000.
E)-$50 000.

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.Suppose this firm is being regulated using a policy of marginal-cost pricing.In this case,economic profits are equal to
A)-$15 000. 
B)-$28 000. 
C)$0. 
D)$90 000. 
E)-$50 000.

Quizplus · Accepted Answer

The Answer of 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.Suppose this firm is being regulated using a policy of marginal-cost pricing.In this case,economic profits are equal to
A)-$15 000. 
B)-$28 000. 
C)$0. 
D)$90 000. 
E)-$50 000.

The Diagram Below Shows Cost and Revenue Curves for a Natural