The Diagram Below Shows Cost and Revenue Curves for a Natural

question 104

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.Suppose this firm is being regulated using a policy of average-cost pricing.The resulting price and output would be ________ per kwh and ________ kwh per day.

• A)$0.06; 1 million
• B)$0.07; 1.5 million
• C)$0.09; 1.4 million
• D)$0.11; 1 million
• E)$0.12; 1 million

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Definitions:

Withdrawal

The discomfort and distress that follow discontinuing an addictive drug or behavior.

Reinforcement

In behavioral psychology, a consequence applied to an organism's environment that increases the likelihood of that organism repeating the associated behavior in the future.

Shaping Behavior

A method of positive reinforcement of behaviors that are successively closer to the desired behavior, used in behavior modification programs.

Positive Reinforcers

Stimuli that, when introduced following a behavior, increase the likelihood of that behavior being repeated in the future.