The following figure shows the demand curve ES, the average cost curve AC, the marginal cost curve MC, and the marginal revenue curve MR for a firm.
Figure 8-1

-Refer to Figure 8-1. If the regulator institutes marginal-cost pricing in the market, then:

Question

The following figure shows the demand curve ES, the average cost curve AC, the marginal cost curve MC, and the marginal revenue curve MR for a firm.
Figure 8-1
 
-Refer to Figure 8-1. If the regulator institutes marginal-cost pricing in the market, then:
A) MC = AC. 
B) P = AC. 
C) MR = MC. 
D) P = MC > AC. 
E) P = MC < AC.

Quizplus · Accepted Answer

The Answer of The following figure shows the demand curve ES, the average cost curve AC, the marginal cost curve MC, and the marginal revenue curve MR for a firm.
Figure 8-1
 
-Refer to Figure 8-1. If the regulator institutes marginal-cost pricing in the market, then:
A) MC = AC. 
B) P = AC. 
C) MR = MC. 
D) P = MC > AC. 
E) P = MC < AC.

The Following Figure Shows the Demand Curve ES, the Average