The Figure Below Shows Revenue and Cost Curves of a Natural

question 76

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
-Suppose that the demand for apples in Washington is elastic and the supply is inelastic. If the government of Washington passes a law prohibiting the use of synthetic pesticides that increases the marginal and average costs of producing apples, then:

• A)the price of Washington State apples will decline.
• B)Washington will stop producing apples, and New York apple growers will benefit.
• C)apple growers will pass most of the increased costs on to consumers in the form of higher apple prices.
• D)apple growers will keep prices constant but reduce costs by advertising less.
• E)apple growers will bear most of the increased costs of regulation, and prices will increase only slightly.

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Definitions:

Individual Roles

Specific functions or responsibilities assigned to persons within a group or organization, highlighting the contribution of each member.

Function

The specific role or activity that an entity or process is designed to perform or execute.

Nursing Association

A professional organization for nurses aimed at promoting their rights, setting standards for practice, and providing educational resources.

Homogeneous Group

A group comprised of members who have similar characteristics, background, or traits.