The Following Figure Shows the Average Cost [AC],marginal Cost [MC],and

question 3

Multiple Choice

The following figure shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price.
Figure 15-3
-In Figure 15-3,if the maximum price allowed in the market is P₁,output levels below Q₁ will:

• A)yield more economic profit than at Q₁.
• B)yield positive but lesser economic profit than at Q₁.
• C)yield negative economic profit.
• D)yield zero economic profit.

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