Price and costs (dollars per unit) 74'551880 3 21 2 $8 million. $16 million. If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be $9 million. MR $0. LRAC MC 3 5 6 Quantity (millions of units)

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Monopoly
Section: Chapter Questions
Problem 6CQQ
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Price and costs (dollars per unit)
O
$8 million.
$16 million.
If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then
consumer surplus will be
$9 million.
MR
$0.
LRAC
MC
3
5
6
Quantity (millions of units)
Transcribed Image Text:Price and costs (dollars per unit) O $8 million. $16 million. If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be $9 million. MR $0. LRAC MC 3 5 6 Quantity (millions of units)
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