Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for a monopolistic firm. a. Assume no regulation is in place. Place box A on the graph to represent the profit or loss for the firm before regulation. b. Now assume marginal cost pricing is imposed. Place box B on the graph to represent the profit or loss for the firm after marginal cost pricing is imposed. 20 19 I A 18 17 I B 16 15 14 13 11 10 8 6 5 4 АТС -MC 3 1 AMR 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Cost and Revenue

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Q: 50 45+ 40- 35 30+ 25 20+ 15 10+ 5+ Price -MC-ATC MR Demand ++ Quantity 50 100 150 200 250 300 350…

A: * SOLUTION :-    From the given information the calculation is given below as ,

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