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 the firm is being regulated using a policy of average- cost pricing. The resulting price and output would be
A) P1 and Q2.
B) P3 and Q2.
C) P1 and Q1.
D) P2 and Q2.
E) P3 and Q1.

Question

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 the firm is being regulated using a policy of average- cost pricing. The resulting price and output would be
A) P1 and Q2. 
B) P3 and Q2. 
C) P1 and Q1. 
D) P2 and Q2. 
E) P3 and Q1.

Quizplus · Accepted Answer

The Answer of 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 the firm is being regulated using a policy of average- cost pricing. The resulting price and output would be
A) P1 and Q2. 
B) P3 and Q2. 
C) P1 and Q1. 
D) P2 and Q2. 
E) P3 and Q1.

The Diagram Below Shows the Market Demand Curve and the Cost