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Suppose that the marginal cost curve crosses the demand curve at $13, and that the average cost at that level of production is $14. If
Suppose that the marginal cost curve crosses the demand curve at $13, and that the average cost at that level of production is $14. If the government intervened in this market and imposed a required price of $13, who benefits? Who loses? In your answer you should consider whether the company would still offer this product. You might also compare this situation to the one in Figure 19.3, below, where the average cost is lower than the average revenue where the marginal cost curve crosses the demand curve
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