The Diagram Below Shows Cost and Revenue Curves for a Natural

question 2

Multiple Choice

The diagram below shows cost and revenue curves for a natural monopoly producing electricity.Price is dollars per kilowatt hour and quantity is kilowatt hours per day. FIGURE 12-7
-Refer to Figure 12-7.If this firm were unregulated and profit maximizing,its price and output would be ________ per kwh and ________ kwh per day.

• A)$0.08; 1.5 million
• B)$0.09; 1.4 million
• C)$0.12; 1 million
• D)$0.11; 1 million
• E)$0.07; 1.5 million