Quantity Price ($) 0 1 2 3 4 5 6 100 95 90 85 80 75 70 Total Revenue ($) 0 95 180 255 320 375 420 Marginal Revenue ($) 95 85 75 65 55 45 Long-Run Total Cost ($) 0 92 177 255 331 406 480 Marginal Cost ($) 92 85 78 76 75 74 The table above depicts the cost and demand structure a natural monopoly faces. If regulators required the firm to practice average cost pricing, the quantity produced would be and the price charged would be $ What is the firm's profit under this regulatory framework? $

Quantity Price ($) 0 1 2 3 4 5 6 100 95 90 85 80 75 70 Total Revenue ($) 0 95 180 255 320 375 420 Marginal Revenue ($) 95 85 75 65 55 45 Long-Run Total Cost ($) 0 92 177 255 331 406 480 Marginal Cost ($) 92 85 78 76 75 74 The table above depicts the cost and demand structure a natural monopoly faces. If regulators required the firm to practice average cost pricing, the quantity produced would be and the price charged would be $ What is the firm's profit under this regulatory framework? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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