The Diagram Below Shows Cost and Revenue Curves for a Natural

question 73

Multiple Choice

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.If this firm were unregulated and profit maximizing,its profit would be ________ per day.

• A)$0
• B)$10 000
• C)$60 000
• D)$110 000
• E)$120 000

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Definitions:

Gratuitous Bailment

A situation where property is voluntarily transferred into another's custody without charge, but with the expectation that it will be returned.

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Valet Parking

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