CHARITY AND SPONSOR ADS
Shopping Cart
0 items
 

Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2

Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2
Click to enlarge
Price: $12.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

INSTANT DOWNLOAD

Solution Guide / Answer Key:

ECONOMICS

3. Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2. The demand for the product is as follows:

Price (per unit) $10 $9 $8 $7 $6 $5 $4 $3 $2 $1
Quantity demanded (units per day) 0 2 4 6 8 10 12 14 16 18

Under these conditions,
(a) What price and quantity will prevail if the monopolist isnt regulated? (a1) price
(a2) quantity
(b) What price-output combination would exist with efficient pricing (MC 5 p)? (b1) price
(b2) quantity
(c) What price-output combination would exist with profit regulation (zero economic (c1) price
profits)? (c2) quantity

Illustrate your answers on the graph below.

 

 

FILE: MS WORD

Write Review
Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.