Figure 913 Figure 9

question 204

Multiple Choice

Figure 9.13 Figure 9.13 shows the market demand and cost curves facing a natural monopoly.
-Refer to Figure 9.13.Suppose the government regulates this industry in order to remove the inefficiency implied by the behaviour of the profit-maximising owners.If regulators require that the firm produces the economically efficient output level, what is this level and what price will be charged?

• A)Q₄ units; P₄
• B)Q₁ units; P₄
• C)Q₁ units; P₁
• D)Q₃ units; P₃

---

Definitions:

U.S. Exchanges

Marketplaces in the United States where securities, commodities, derivatives, and other financial instruments are traded.

U.S Companies

Businesses or corporations that are registered and operate within the United States.

Outstanding Checks

Checks that have been written and recorded in the issuer's ledger but have not yet been cleared by the bank.

Checks Written

The act of writing a check to settle a transaction, implicating the withdrawal of the specified amount from the payer’s bank account.