A, B, C, & D

. Clearly show all Steps and Explanations. 65 Marks Question 4 - 25 Marks The table below shows costs and demand data for a monopoly Quantity Marginal Demanded Average unit Marginal Price Revenue Cost 0 COS $35.00 100 32.00 $ 32.00 $48.00 $48.00 200 29.00 26.00 30.00 12.00 300 26.00 20.00 23.34 10.00 400 23.00 14.00 21.00 14.00 500 20.00 8.00 20.00 16.00 500 17.00 2.00 19.50 17.00 700 14.00 4.00 19 28 18.00 800 11.00 -10.00 18.68 8.50 900 8.00 -16.00 18.72 19.00 (a) If the monopoly is unregulated by the government 1.) what price will they charge? Explain why? 2 Mark what output will they produce? 2 Marks How much economic profit will they make? 2 Marks (b) If the monopoly is regulated by the government and is only allowed to sell their product at a price equal to their marginal cost, (Socially Optimal price) using the data in the table: what price can they charge? Explain why? 2 Marks what output will they produce? 2 Marks iii.) How much economic profit will they make? 2 Marks (c) If the monopoly is regulated to charge their average unit cost, (Fair-return price) using the data in the table. what price will they charge? Explain why? 2 Marks what output will they produce? 2 Marks iii) How much economic profit will they make? 2 Marks (d) Plot 4 curves, the Demand Curve, the Marginal Revenue Curve, the Average unit cost Curve, and the Marginal Cost Curve. Fully label your diagram including the three prices in (a), (b). (c) above. (Study page 272), Figure 11-9). 7 Marks