Exhibit 15-4

-The firm in Exhibit 15-4 is a natural monopoly.If left unregulated,its economic profit is:

Name: Exhibit 15-4 -The firm in Exhibit 15-4 is a natural monopoly.If left unregulated,its economic profit is:
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Question

Exhibit 15-4
 
-The firm in Exhibit 15-4 is a natural monopoly.If left unregulated,its economic profit is:

Quizplus · Accepted Answer

The firm is a natural monopoly, so it has no competition. This means that it can set its own prices and output levels. The firm will set its price at the point where marginal revenue equals marginal cost. This will result in an economic profit of $210.

Exhibit 15-4 -The Firm in Exhibit 15-4 Is a Natural Monopoly.If Left