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 pricing policy of average- cost pricing. In this case, economic profits are equal to
Definitions:
Patterns of Behavior
The repeated actions or reactions characterizing an individual or group over a period.
Storming Stage
The second phase in team development, characterized by conflict and competition as team members begin to express their individual perspectives and challenge the group's dynamics.
Team Development
The process of improving the effectiveness of a work group through various stages of growth, skill enhancement, and bonding.
Free Riding
The practice of benefiting from the efforts or resources of others without giving fair contribution or compensation.
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