The Figure Below Shows Revenue and Cost Curves of a Natural

question 66

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
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In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-If social regulation increases a firm's fixed and variable costs:

• A)then both marginal cost and average total cost will increase, and the firm will produce more.
• B)then both marginal cost and average total cost will increase, and the firm will produce less.
• C)then both marginal cost and average total cost will decrease, and profits will increase.
• D)then marginal cost will increase, average total cost will be constant, and price will decline.
• E)then both price and quantity produced will fall.

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Definitions:

Dyslexia

A reading disorder characterized by problems such as letter reversals, mirror reading, slow reading, and reduced comprehension (from the Greek roots dys, meaning “bad,” and lexikon, meaning “of words”).

Word Recognition

The ability to identify and understand written words accurately and efficiently.

Decoding

The process of interpreting or understanding information from coded data or a message.

Average Yearly Weight

The mean weight gain or loss of an individual or population over the course of a year, commonly used in health and fitness assessments.