-Refer to the Above Figure

question 47

Multiple Choice

-Refer to the above figure. Suppose the government requires the natural monopolist to charge the efficient price. Then profits for the firm will be

• A) zero.
• B) losses equal to Q4 times distance f-g.
• C) losses equal to Q3 times distance d-e.
• D) profits equal to Q1 times distance a-b.

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