6 7 In the table below are cost and demand data for a monopolist. Show all calculations. Quantity Marginal demanded revenue 8 0 9 1 2 3 35 minutes remaining 4 5 $105.00 96.00 Show Transcribed Text 87.00 78.00 Price 69.00 60.00 51.00 42.00 33.00 24.00 Show Transcribed Text 6.00 $96.00 78.00 Use the editor to format your answer 60.00 42.00 24.00 -12.00 -30.00 -48.00 C S Average cost c $144.00 90.00 70.34 63.00 60.00 58.50 57.86 57.50 57.33 Marginal cost $144.00 36.00 30.00 42.00 48.00 2 OF 28 QUESTIONS REMAINING 51.00 a) What is the level of price, output, and amount of profit for an unregulated monopolist that roduces where MR-MC? 5) Using the data in the table, what is the price, output, and profit for a regulated monopolist that I ets a "socially optimal" price i.e. where P=MC? :) Using the data in the table, what is the price, output, and profit for a regulated monopolist that harges a "fair-return" price i.e. where P=ATC? d) Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? Why? art ii) (4 marks) 54.00 55.50 56.00 35 minutes remaining 2 OF 28 QUESTIONS REMAINING (c) Using the data in the table, what is the price, output, and profit for a regulated monopolist that charges a "fair-return" price i.e. where P=ATC? (d) Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? Why? Part ii) (4 marks) The public transportation company in a city charges senior citizens & students $100 for a monthly pass. Everyone else pays $140 for a monthly pass. What conditions must exist to make this possible? From an economic perspective, why would the company do this? Explain. Type your answers in the box area below.