Refer to the Graph Shown

question 178

Multiple Choice

Refer to the graph shown. If the price of the product is $1 and the firm is a natural monopoly:

• A)there will be a surplus of the product.
• B)the firm will earn economic profit by satisfying the market quantity demanded at that price.
• C)the firm can earn profit by producing more than Q_c.
• D)the firm will incur losses by producing the quantity demanded at that price.

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Definitions:

Stiff

Describes an object or body part that is rigid, difficult to bend or move.

Sponge

A simple aquatic creature with a porous body, or a soft, absorbent material used for washing and cleaning.

Type II Alveolar Cell

is a cell in the alveoli of the lungs that produces surfactant to reduce surface tension and prevent lung collapse.

Surfactant

A substance that reduces surface tension, in the lungs it prevents the collapse of alveoli during exhalation.