Question: please help to answer In the table below are cost and demand data for a monopolist. Quantity Marginal revenue Average cost Marginal cost demanded _
please help to answer


In the table below are cost and demand data for a monopolist. Quantity Marginal revenue Average cost Marginal cost demanded _ $144-00 36-00 30-00 48-00 __il 51-00 54-00 55.50 55.00 69.00 42.00 63.00 42.00 (a) What is the level of price, output, and amount of prot for an unregulated monopolist that produces where MR=MC3 (b) Using the data in the table, what is the price, output, and prot for a regulated monopolist that sets a "socially optimal" price i.e. where P=MC? (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 efcient? 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
