If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will
A) incur an economic loss.
B) make zero economic profit, that is, its owners make a normal profit.
C) make an economic profit of $4 million.
D) make an economic profit of $16 million.
A
Economics
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Life expectancy at birth in the United States has more than doubled since 1850
Indicate whether the statement is true or false
Economics
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100 B) L = 10 C) L = 5 D) Not enough information is given.
Economics