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,under marginal-cost pricing,the monopoly would earn: A) negative economic profit equal to P<sub>3</sub>CBP<sub>2</sub>. B) positive economic profit equal to P<sub>2</sub>BQ<sub>2</sub>O. C) negative economic profit equal to FBQ<sub>2</sub>Q<sub>1</sub>. D) positive economic profit equal to FCQ<sub>2</sub>Q<sub>1</sub>.](https://d2lvgg3v3hfg70.cloudfront.net/TB1826/11ea857e_d7cc_5f5d_a433_8d004eab3942_TB1826_00_TB1826_00.jpg)
-In Figure 15-3,under marginal-cost pricing,the monopoly would earn:
A) negative economic profit equal to P3CBP2.
B) positive economic profit equal to P2BQ2O.
C) negative economic profit equal to FBQ2Q1.
D) positive economic profit equal to FCQ2Q1.
Correct Answer:
Verified
Correct Answer:
Verified
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