Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P₂, the monopolist would
A)produce output Q₁ and realize an economic profit.
B)produce output Q₃ and realize an economic profit.
C)close down in the short run.
D)produce output Q₃ and realize a normal profit.

Question

Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P₂, the monopolist would
A)produce output Q₁ and realize an economic profit. 
B)produce output Q₃ and realize an economic profit. 
C)close down in the short run. 
D)produce output Q₃ and realize a normal profit.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P₂, the monopolist would
A)produce output Q₁ and realize an economic profit. 
B)produce output Q₃ and realize an economic profit. 
C)close down in the short run. 
D)produce output Q₃ and realize a normal profit.

Refer to the Diagram for a Natural Monopolist