The Diagram Below Shows Cost and Revenue Curves for a Natural

question 104

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.Suppose this firm is being regulated using a policy of average-cost pricing.The resulting price and output would be ________ per kwh and ________ kwh per day.

• A)$0.06; 1 million
• B)$0.07; 1.5 million
• C)$0.09; 1.4 million
• D)$0.11; 1 million
• E)$0.12; 1 million

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Definitions:

Somatic Marker Hypothesis

Neurologist Antonio Damasio’s idea that the bodily (somatic), emotional component of thought is a necessary part of problem solving and decision making.

Emotional Reactions

Emotional reactions are immediate responses of the emotional system to stimuli, characterized by feelings that range from happiness and joy to sadness, anger, fear, or disgust.

Right Frontal Lobes

Regions of the brain located in the right frontal cortex involved in managing emotions, making decisions, and controlling social behaviors.

Phineas Gage

A railway worker from the 19th century whose survival of a severe brain injury helped advance the understanding of brain function and personality change.