The Diagram Below Shows the Market Demand Curve and the Cost

question 54

Multiple Choice

The diagram below shows the market demand curve and the cost curves for a single firm.
FIGURE 12-6
-Refer to Figure 12-6.Suppose this firm is being regulated using a policy of average -cost pricing.In this case,economic profits to the firm are represented by the area

• A)P2P3ad.
• B)P2P3ab.
• C)0P3aQ1.
• D)P1P2bc.
• E)There are no economic profits.

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