Use the Following Figure to Answer the Question : Figure

question 8

Multiple Choice

Use the following figure to answer the question : Figure 11-1 : shows the downward-sloping demand curve [D] and marginal revenue [MR] curve and the upward-sloping marginal cost [MC] curve for a monopolist.
-Refer to Figure 11-1.If the government wishes to regulate the monopoly firm by restricting the price at OC in the market,the demand curve will be equal to _____.

• A)VD
• B)CIJ
• C)CFD
• D)FD

---

Definitions:

Subsidies

Financial assistance provided by the government to individuals or businesses to support economic activities deemed beneficial for the public.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximizing overall welfare or social utility.

Output Quantity

The amount of goods or services produced by a company or sector during a specific period.

Social Planner

An idealized figure in economic theory responsible for designing economic policies or interventions to achieve optimal allocation of resources and welfare in a society.