The Figure Below Shows Revenue and Cost Curves of a Natural

question 59

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm. Figure 12.1 In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-Refer to Figure 12.1.Identify the fair-rate-of-return price.

• A)P₅
• B)P₂
• C)P₄
• D)P₁
• E)P₃

---

Definitions:

Program Results

The outcomes or impacts of a project or program, often used as a measure of its effectiveness.

Health Benefit

Refers to the positive effects on health and well-being provided by certain actions, policies, or products, including medical insurance coverage provided by employers or governments.

Fixed Expense

Costs or expenses that remain constant for a period of time regardless of changes in business activity levels, such as rent or salaries.

Net Assets

The total value of an organization's assets minus its total liabilities, representing the organization's financial health.