The graph below shows demand curve and cost data for a firm operating as a monopolist. In addition, the green line shows average total costs (ATC).
Graphing window shows horizontal axis: 0 to 30, vertical axis: 0 to 30. Start Graph, Color red
x
y
0
10
1
9.5
2
9
3
8.5
4
8
5
7.5
6
7
7
6.5
8
6
9
5.5
10
5
11
4.5
12
4
13
3.5
14
3
15
2.5
16
2
17
1.5
18
1
19
0.5
20
0
21
-0.5
22
-1
23
-1.5
24
-2
25
-2.5
26
-3
27
-3.5
28
-4
29
-4.5
30
-5
Start Graph, Color blue
x
y
0
10
1
9
2
8
3
7
4
6
5
5
6
4
7
3
8
2
9
1
10
-0
11
-1
12
-2
13
-3
14
-4
15
-5
16
-6
17
-7
18
-8
19
-9
20
-10
21
-11
22
-12
23
-13
24
-14
25
-15
Start Graph, Color black
x
y
0
0
1
1.8
2
3.6
3
5.4
4
7.2
5
9
6
10.8
7
12.6
8
14.4
9
16.2
10
18
11
19.8
12
21.6
13
23.4
14
25.2
15
27
16
28.8
17
30.6
18
32.4
19
34.2
20
36
21
37.8
22
39.6
23
41.4
24
43.2
25
45
Start Graph, Color green
x
y
1
22.9
2
12.8
3
10.033
4
9.1
5
8.9
6
9.067
7
9.443
8
9.95
9
10.544
10
11.2
11
11.9
12
12.633
13
13.392
14
14.171
15
14.967
16
15.775
17
16.594
18
17.422
19
18.258
20
19.1
21
19.948
22
20.8
23
21.657
24
22.517
25
23.38
26
24.246
27
25.115
28
25.986
29
26.859
30
27.733
Label "Quantity of Train Tickets" at pixel coordinates (175,0).Label "Price of Train Tickets" at pixel coordinates (0,170).
Suppose that the government decided to regulate this monopolist by requiring the firm to produce at the point where the Marginal Cost curve intersects with the demand curve. What is the quantity under this marginal cost pricing?
4.35
Hint
Box 1: Select the best answer
Suppose that the government decided to regulate this monopolist by requiring the firm to produce at the point where the Marginal Cost curve intersects with the demand curve. What is the price under this marginal cost pricing?
7.83
Hint
Box 1: Select the best answer
Compared to the profit maximizing quantity for this monopolist, the marginal cost pricing quantity is
Bigger
Hint
Box 1: Select the best answer
Compared to the profit maximizing price for this monopolist, the marginal cost pricing price is