Question: Use Figure 14P-4 to answer the following questions. a. If this monopolist were regulated, would it prefer average total cost pricing (P = ATC) or

Use Figure 14P-4 to answer the following questions.

Use Figure 14P-4 to answer the following questions. a.

a. If this monopolist were regulated, would it prefer average total cost pricing (P = ATC) or efficient pricing?
b. Is this a natural monopoly?

Price (S) MC ATC MR 12 3 4 5 67 8 9 10 11 Quantity

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