If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure, then the deadweight loss will equal O A. $12 million. 10 О В. $0. 8 O C. $8 million. O D. $4 million. LRAC MC MR D 1 3 5 6 Quantity (millions of units) Price and costs (dollars per unif)

If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure, then the deadweight loss will equal O A. $12 million. 10 О В. $0. 8 O C. $8 million. O D. $4 million. LRAC MC MR D 1 3 5 6 Quantity (millions of units) Price and costs (dollars per unif)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section14.1: Why Monopolies Arise

Problem 1QQ

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Question

If a marginal cost pricing rule is imposed on the natural monopoly shown in the
figure, then the deadweight loss will equal
O A. $12 million.
10
О В. $0.
8
O C. $8 million.
O D. $4 million.
LRAC
MC
MR
D
1
3
5
6
Quantity (millions of units)
Price and costs (dollars per unit)

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