Refer to Exhibit 15.1, which shows the cost and revenue curves for a natural monopolist-the operator of a subway riders per month pay system. The monopolist maximizes profit by producing where per trip. a) b) 210 million; $1.25 210 million; $0.50 c) 100 million; $4 d) 100 million; $2.50 e) 200 million; $1.50

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Refer to Exhibit 15.1, which shows the cost and revenue curves for a natural monopolist-the operator of a subway
riders per month pay
system. The monopolist maximizes profit by producing where
per trip.
a) 210 million; $1.25
b)
210 million; $0.50
c) 100 million; $4
d) 100 million; $2.50
e) 200 million; $1.50
Transcribed Image Text:Refer to Exhibit 15.1, which shows the cost and revenue curves for a natural monopolist-the operator of a subway riders per month pay system. The monopolist maximizes profit by producing where per trip. a) 210 million; $1.25 b) 210 million; $0.50 c) 100 million; $4 d) 100 million; $2.50 e) 200 million; $1.50
Exhibit 15.1
$4.00-
Dollars per trip
2.50
1.50
1.25-
0.50-
0
a
A
B
b
100
Demand
h
Marginal revenue
200
9
Long-run
average cost
Le Long-run
marginal cost
210 Trips per month
(millions)
Transcribed Image Text:Exhibit 15.1 $4.00- Dollars per trip 2.50 1.50 1.25- 0.50- 0 a A B b 100 Demand h Marginal revenue 200 9 Long-run average cost Le Long-run marginal cost 210 Trips per month (millions)
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