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In this graph on http://farm3.static.flickr.com/2705/4145138755_962da016ea_o.

In this graph on

http://farm3.static.flickr.com/2705/4145138755_962da016ea_o.png

Price regulators must permit a price at which the monopolist is just willing to operate, that is, a price at which the monopolist makes a profit of zero.

Graphically, where is this price?



A. The price on the demand curve that corresponds to marginal revenue equaling marginal cost

B. The price that corresponds to the point at which the demand curve intersects the marginal cost curve

C. The price that corresponds to the point at which the demand curve intersects the average cost curve

D. The price that corresponds to the point at which marginal cost equals marginal revenue

Top Answer

Dear student, The answer is C. The price that... View the full answer

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