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-Refer to the Above Figure

Question 100

Multiple Choice

  -Refer to the above figure. Suppose the government requires the natural monopolist to charge the efficient price. Then profits for the firm will be A)  zero. B)  losses equal to Q4 times distance f-g. C)  losses equal to Q3 times distance d-e. D)  profits equal to Q1 times distance a-b.
-Refer to the above figure. Suppose the government requires the natural monopolist to charge the efficient price. Then profits for the firm will be


A) zero.
B) losses equal to Q4 times distance f-g.
C) losses equal to Q3 times distance d-e.
D) profits equal to Q1 times distance a-b.

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