-In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would sell the product at the price

Question

Quizplus · Accepted Answer

The profit-maximizing firm will sell the product at the price where marginal cost equals marginal revenue. In this case, marginal cost is equal to MC, and marginal revenue is equal to MR. The profit-maximizing firm will sell the product at the price where MC = MR, which is at point A.

-In the Above Figure, If This Natural Monopolist Were Unregulated