-Refer to Figure 9-12

question 65

Multiple Choice

-Refer to Figure 9-12. Why won't regulators require that ETSA Power produce the economically efficient output level?

• A) because there is insufficient demand at that output level
• B) because at the economically efficient output level, the marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit
• C) because Erickson Power will earn zero profit
• D) because Erickson Power will sustain persistent losses and will not continue in business in the long run

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Definitions:

Cover Up

An attempt to hide a mistake, wrongdoing, or embarrassing information from being made public.

Blame

The act of attributing responsibility for a fault or wrong to someone or something.

Ethical Approach

A perspective or method guided by moral principles, focusing on right and wrong conduct, fairness, and respect for others.

Public Knowledge

Information or facts that are accessible and available to the general public, not restricted or confidential.