Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P ₁, the monopolist would produce output
A)Q₂ and realize a normal profit.
B)Q₄ and realize a normal profit.
C)Q₃ and realize an economic profit.
D)Q₄ and realize a loss.

Question

Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P ₁, the monopolist would produce output
A)Q₂ and realize a normal profit. 
B)Q₄ and realize a normal profit. 
C)Q₃ and realize an economic profit. 
D)Q₄ and realize a loss.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P ₁, the monopolist would produce output
A)Q₂ and realize a normal profit. 
B)Q₄ and realize a normal profit. 
C)Q₃ and realize an economic profit. 
D)Q₄ and realize a loss.

Refer to the Diagram for a Natural Monopolist