The Diagram Below Shows the Market Demand Curve and the Cost

question 83

Multiple Choice

The diagram below shows the market demand curve and the cost curves for a single firm. FIGURE 12-6
-Refer to Figure 12-6. Suppose this firm is being regulated using a policy of marginal-cost pricing.In this case, the firm would experience represented by the area .

• A) losses; 0P2bQ₂
• B) profits; P2P3ad
• C) profits; edbc
• D) losses; edbc
• E) losses; P1P2bc

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