The figure above shows a natural monopoly.
-In the figure above,if the firm is regulated using an average cost pricing rule,the deadweight loss created is equal to the area of
A) ABG.
B) BEFG.
C) BCFG.
D) BCE.
E) None of the above because there is no deadweight loss created.

Question

The figure above shows a natural monopoly.
-In the figure above,if the firm is regulated using an average cost pricing rule,the deadweight loss created is equal to the area of
A) ABG. 
B) BEFG. 
C) BCFG. 
D) BCE. 
E) None of the above because there is no deadweight loss created.

Quizplus · Accepted Answer

The Answer of  
The figure above shows a natural monopoly.
-In the figure above,if the firm is regulated using an average cost pricing rule,the deadweight loss created is equal to the area of
A) ABG. 
B) BEFG. 
C) BCFG. 
D) BCE. 
E) None of the above because there is no deadweight loss created.

The Figure Above Shows a Natural Monopoly