LRAC MC MR D 3 4 Quantity (millions of unit) 2 5 If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be $8 million. O $16 million. $9 million. O $0. Price and costs (dollars per uni O oB on. 32-

LRAC MC MR D 3 4 Quantity (millions of unit) 2 5 If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be $8 million. O $16 million. $9 million. O $0. Price and costs (dollars per uni O oB on. 32-

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 20RQ: If public utilities are a natural monopoly, what would be the danger in deregulating them?

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Question

LRAC
MC
MR
D
3 4
Quantity (millions of unit)
2
5
If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then
consumer surplus will be
$8 million.
O $16 million.
$9 million.
O $0.
Price and costs (dollars per uni
O oB on. 32-

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