Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
helpmeplease1 helpmeplease1
wrote...
Go to Answer
Posts: 123
Rep: 0 0
A year ago

The diagram below shows the market demand curve and the cost curves for a single firm.

Short description: A graph plots output against price. Long description: The horizontal axis representing output lists the following values from left to right: Q subscript 1 and Q subscript 2. The vertical axis representing dollars lists the following values from bottom to top: P subscript 1, P subscript 2, and P subscript 3. The graph plots three curves and five points. The points are as follows: a (Q subscript 1, P subscript 3), b (Q subscript 2, P subscript 2), c (Q subscript 2, P subscript 1), d (Q subscript 1, P subscript 2), and e (Q subscript 1, P subscript 1). The curve, LRAC passes through the following points: a and b. The curve, MC passes through the point, c. The curve, D passes through the following points: a and c. Curve, D intersects the curves, LRAC and MC at points, a and c.

FIGURE 12-7

Refer to Figure 12-7. Suppose this firm is a government-owned natural monopoly and imposes a price so as to achieve allocative efficiency in this market. The amount of tax revenue that the government must raise elsewhere in the economy to offset the losses of this firm is represented by the area



▸ P1P3ae.

▸ Q1dbQ2.

▸ P1P2bc.

▸ edbc.

▸ 0P2bQ2.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 30 times
1 Reply
Replies
Answer verified by a subject expert
finley07finley07
wrote...
#1
Posts: 128
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

helpmeplease1 Author
wrote...

A year ago
Just got PERFECT on my quiz
Roselalo
wrote...

Yesterday
Brilliant ツ
Smair87
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  938 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1731
  
 5483
  
 201
Your Opinion
Which country would you like to visit for its food?
Votes: 204
Previous poll results: Does a gender wage gap exist in America?