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Figure 10-16 Figure 10-16 Shows the Market Demand and Cost

Question 242

Multiple Choice

Figure 10-16
Figure 10-16    Figure 10-16 shows the market demand and cost curves facing a natural monopoly. -Refer to Figure 10-16.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________. A)  Q₁ units; P₄ B)  Q₁ units; P₁ C)  Q₅ units; P₃ D)  Q₃ units; P₄ Figure 10-16 shows the market demand and cost curves facing a natural monopoly.
-Refer to Figure 10-16.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________.


A) Q₁ units; P₄
B) Q₁ units; P₁
C) Q₅ units; P₃
D) Q₃ units; P₄

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