The figure above shows the costs and demand curves for the Bigshow Cable Company. If the regulator of Bigshow Cable Company set its price at $4, the company would
A) receive a producer surplus equal to $18 million.
B) make zero economic profit.
C) incur an economic loss of $7 million.
D) none of the above.
B
Economics
You might also like to view...
Roughly what fraction of total spending is consumption spending?
a. One-half b. One-eighth c. Two-fifths d. One-quarter e. Two-thirds
Economics
The following is the set of conditions is necessary for ________ for a perfectly competitive firm: P = SRMC = SRAC = LRAC.
A. long-run profit B. long-run production with economic losses C. long-run equilibrium D. short-run shut down
Economics