Figure 15-15 Figure 15-15 Shows the Cost and Demand Curves for the and Demand

question 57

Multiple Choice

Figure 15-15

Figure 15-15 shows the cost and demand curves for the Erickson Power Company.
-Refer to Figure 15-15.Why won't regulators require that Erickson Power produce the economically efficient output level?

• A)because there is insufficient demand at that output level
• B)because at the economically efficient output level, the marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit
• C)because Erickson Power will earn zero profit
• D)because Erickson Power will sustain persistent losses and will not continue in business in the long run

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Definitions:

IGF2 Gene

A gene that encodes the insulin-like growth factor 2, playing a crucial role in growth and development, especially fetal growth.

Lactose Repressor

The lactose repressor is a protein that binds to the promoter region of the lactose operon in bacteria, regulating the metabolism of lactose by inhibiting the transcription of lactose-utilizing genes.

Transcription

The process in which the DNA sequence in a gene is copied into mRNA, serving as the first step in gene expression.

Lactose Operon

A gene regulatory mechanism in bacteria that allows the cells to adapt to the presence of lactose, enabling the digestion of this sugar when it is available.