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Question 1

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).

Graphs with window x: 0 to 30, y: 0 to 30. Start Graph, Color red
xy
020
119.5
219
318.5
418
517.5
617
716.5
816
915.5
1015
1114.5
1214
1313.5
1413
1512.5
1612
1711.5
1811
1910.5
2010
219.5
229
238.5
248
257.5
267
276.5
286
295.5
305
Start Graph, Color blue
xy
020
119
218
317
416
515
614
713
812
911
1010
119
128
137
146
155
164
173
182
191
200
21-1
22-2
23-3
24-4
25-5
26-6
27-7
28-8
29-9
30-10
Start Graph, Color black
xy
00
13.6
27.2
310.8
414.4
518
621.6
725.2
828.8
932.4
1036
1139.6
1243.2
Start Graph, Color green
xy
113.8
29.6
39.4
410.2
511.4
612.8
714.31
815.9
917.53
1019.2
1120.89
1222.6
1324.32
1426.06
1527.8
1629.55
1731.31
1833.07
1934.83
2036.6
2138.37
2240.15
2341.92
2443.7
2545.48
Label "Quantity of Glasses" at pixel coordinates (175,0).Label "Price of Glasses" 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?

 

Hint


Question 2

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?

 

Hint


Question 3
Compared to the profit maximizing quantity for this monopolist, the marginal cost pricing quantity is

 

Hint


Question 4
Compared to the profit maximizing price for this monopolist, the marginal cost pricing price is

 

Hint