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

question 14

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
-Refer to Figure 15-3.Which of the following price and output combinations would an unregulated monopolist choose?

• A)P2,Q2
• B)P1,Q1
• C)P3,Q2
• D)P4,Q3

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