The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-According to Figure 14.1, the price under perfect competition will be:
Definitions:
Net Social Benefits
The difference between the total benefits and total costs of a project or policy when considering its impact on society as a whole.
Consumers
Individuals or groups who purchase goods and services for personal use, driving demand in the economy.
Taxpayers
Individuals or entities that are obligated to pay taxes to a governmental authority, based on income, property value, or consumption.
Parity
The state of being equal or equivalent in terms of value, status, or amount.
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