he following table gives the cost and demand data for a monopolist: utput Price $ Marginal Revenue $ Average Cost $ Marginal Cost $ 100 100 138 100 95 90 109 80 90 80 86 40 85 70 82 70 80 60 80 72 75 50 79.2 75 85 96 70 40 80 65 30 82 efer to the above information to answer this question. ippose that the monopolist is regulated and forced to charge a fair-return price. hat will be the price and output? lect one: O a. $80 and 5. O b. $75 and 6. O c. $85 and 4. O d. $70 and 4.
he following table gives the cost and demand data for a monopolist: utput Price $ Marginal Revenue $ Average Cost $ Marginal Cost $ 100 100 138 100 95 90 109 80 90 80 86 40 85 70 82 70 80 60 80 72 75 50 79.2 75 85 96 70 40 80 65 30 82 efer to the above information to answer this question. ippose that the monopolist is regulated and forced to charge a fair-return price. hat will be the price and output? lect one: O a. $80 and 5. O b. $75 and 6. O c. $85 and 4. O d. $70 and 4.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Antitrust And Regulation
Section: Chapter Questions
Problem 10SQP
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Question
Please see the attached40
Transcribed Image Text:The following table gives the cost and demand data for a monopolist:
Output
Price $
Marginal Revenue $
Average Cost $ Marginal Cost $
100
100
138
100
2
95
90
109
80
3
90
80
86
40
14
85
82
70
70
60
80
80
72
6
75
50
79.2
75
70
40
80
85
8
65
30
82
96
Refer to the above information to answer this question.
Suppose that the monopolist is regulated and forced to charge a fair-return price.
What will be the price and output?
Select one:
O a. $80 and 5.
O b. $75 and 6.
O C. $85 and 4.
O d. $70 and 4.
O e. $65 and 8.
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