Refer to the figure below. If the relevant curves are MC1 and MB2, a rational consumer will acquire ________ units of information, the amount for which marginal benefit for information is ________ its marginal cost.
A. 5; equal to
B. 5; more than
C. 4; more than
D. 4; equal to
Answer: A
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In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would produce
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a. True b. False
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