In the figure above, if the firm is regulated using an average cost pricing rule, the firm avoids an economic loss, but produces less than the efficient quantity and creates a deadweight loss. incurs an economic loss, produces the efficient quantity, and avoids creating a deadweight loss. avoids an economic loss, is able to produce the efficient quantity, and therefore avoids creating a deadweight loss. avoids an economic loss, produces the efficient quantity, and creates a deadweight loss. incurs an economic loss, but produces the efficient quantity and creates a deadweight loss.

In the figure above, if the firm is regulated using an average cost pricing rule, the firm avoids an economic loss, but produces less than the efficient quantity and creates a deadweight loss. incurs an economic loss, produces the efficient quantity, and avoids creating a deadweight loss. avoids an economic loss, is able to produce the efficient quantity, and therefore avoids creating a deadweight loss. avoids an economic loss, produces the efficient quantity, and creates a deadweight loss. incurs an economic loss, but produces the efficient quantity and creates a deadweight loss.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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