Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of
A)P₁.
B)P₃.
C)P₂.
D)P₄.

Question

Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of
A)P₁. 
B)P₃. 
C)P₂. 
D)P₄.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of
A)P₁. 
B)P₃. 
C)P₂. 
D)P₄.

Refer to the Diagram for a Pure Monopolist