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The Diagram Below Shows Cost and Revenue Curves for a Natural

question 25

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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. 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 marginal-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) $0.08; 1.5 million D) $0.09; 1.4 million E) $0.12; 1 million FIGURE 12-7
-Refer to Figure 12-7.Suppose this firm is being regulated using a policy of marginal-cost pricing.The resulting price and output would be ________ per kwh and ________ kwh per day.


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