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The Following Graph Shows the Market Demand and Average Cost

question 119

Multiple Choice

The following graph shows the market demand and average cost curve for electricity (in millions of kilowatts) in an urban centre:
The following graph shows the market demand and average cost curve for electricity (in millions of kilowatts) in an urban centre:    -Refer to the above graph to answer this question.Suppose that the price is $3,and the market is served by two competing firms,each having 50% of the market.What will be the profit or loss made by each firm? A) $0. B) Loss of $50. C) Loss of $100. D) Loss of $150. E) Profit of $100.
-Refer to the above graph to answer this question.Suppose that the price is $3,and the market is served by two competing firms,each having 50% of the market.What will be the profit or loss made by each firm?


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