Multiple Choice
Use the following table to answer the question : Table 15-3: shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price. ![Use the following table to answer the question : Table 15-3: shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price. -In Figure 15-3,if the monopoly is forced to use the average-cost pricing policy,it would: A) produce Q2 at a price P3 and make zero economic profit. B) produce Q3 at a price P4 and make positive economic profit. C) produce Q1 at a price P1 and make zero economic profit. D) produce Q2 at a price P3 and make positive economic profit.](https://d2lvgg3v3hfg70.cloudfront.net/TB1826/11ea857e_d7cc_5f5d_a433_8d004eab3942_TB1826_00_TB1826_00.jpg)
-In Figure 15-3,if the monopoly is forced to use the average-cost pricing policy,it would:
A) produce Q2 at a price P3 and make zero economic profit.
B) produce Q3 at a price P4 and make positive economic profit.
C) produce Q1 at a price P1 and make zero economic profit.
D) produce Q2 at a price P3 and make positive economic profit.
Correct Answer:
Verified
Correct Answer:
Verified
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