The above figure represents the cost and demand curves for a natural monopoly that is regulated using a marginal cost pricing rule
a) What is the quantity?
b) What price is charged?
c) What area represents the consumer surplus when the firm is regulated using a marginal cost pricing rule?
d) What distance represents the firm's loss per unit when the firm is regulated using a marginal cost pricing rule?
a) The quantity is the efficient quantity, Q3.
b) The price is P2.
c) When the firm is regulated using a marginal cost pricing rule, the consumer surplus is equal to the area of the triangle P1dP2.
d) The loss per unit is the amount equal to the distance cd.
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When aggregate demand increases, there is a movement ________ along the AS curve and ________
A) up; an upward shift of the short-run Phillips curve B) down; a movement down along the short-run Phillips curve C) up; a movement up along the short-run Phillips curve D) up; a movement down along the short-run Phillips curve E) down; a downward shift of the short-run Phillips curve
Which of the following is not a variable in the index of leading indicators?
a. Average work week. b. Duration of unemployment. c. Employment claims. d. New businesses.