If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then the firm's economic profit will be
A) $9 million.
B) $12 million.
C) $0, that is, the firm's owners make only a normal profit.
D) negative, that is, the firm incurs an economic loss.
C
Economics
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While the slope of the perfectly inelastic supply curve ________, the slope of the perfectly elastic supply curve ________
A) is zero, approaches infinity B) approaches infinity, is zero C) is zero, is zero D) approaches infinity, approaches infinity
Economics
To avoid double counting in the calculation of GDP,
a. net exports should be excluded. b. the value of intermediate goods and services should be excluded. c. the capital consumption allowance should be excluded. d. business investment should be excluded. e. government purchases should be excluded.
Economics