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$45.00 D Monopoly - Government Price $40.00 Ceiling Set Below Lowest ATC, But MC Above Lowest AVC. $35.00 $30.00 $25.00 ATC $20.00 AVC $15.00 $10.00

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$45.00 D Monopoly - Government Price $40.00 Ceiling Set Below Lowest ATC, But MC Above Lowest AVC. $35.00 $30.00 $25.00 ATC $20.00 AVC $15.00 $10.00 $5.00 D MR Price Ceiling AFC $0.00 15 19 36 64 75 84 91 96 QUANTITY b. In this scenario, the regulatory board imposed a price ceiling on the Onus monopoly ferry operator that was calculated to be well above the ferry owner's lowest AVC and equal to the ferry owner's lowest ATC. Explain in significant detail, what will be the short run and long run impacts of such a price ceiling on the Onus monopoly ferry operator's profits and continued ability to provide service to the inhabitants of the island of Onus.3. Onus residents, in questions 2.a.-d. above, complain to their local politicians about the high prices. In an attempt to reduce the exorbitant price that the residents must pay for ferry service to and from the mainland, the local politicians convince the legislature to create a regulatory board which will impose a legal price ceiling on the Onus monopoly ferry operator. a. In this scenario, the regulatory board imposed a price ceiling on the Onus monopoly ferry operator that was calculated to be below the ferry operator's lowest ATC, but well above its lowest AVC. Explain in significant detail, what will be the short run and long run impacts of such a price ceiling on the Onus monopoly ferry operator's profits and continued ability to provide service to the inhabitants of the island of Onus.$45.00 D Monopoly - Government Price Ceiling Set At Lowest ATC. MC $40.00 $35.00 $30.00 $25.00 ATC $20.00 "AVC $15.00 $10.00 D $5.00 MR Price Ceiling AFC $0.00 B 15 19 36 64 75 84 91 96 QUANTITY c. In this scenario, the regulatory board, imposed a price ceiling on the Onus ferry operator that was calculated to be well above the ferry owner's lowest AVC and well above the ferry owner's lowest ATC. Explain in significant detail, what will be the short run and long run impacts of such a price ceiling on the Onus monopoly ferry operator's profits and continued ability to provide service to the inhabitants of the east coast island of Onus.$45.00 D Monopoly - Government Price Ceiling $40.00 Set Above Lowest ATC. MC $35.00 $30.00 $25.00 C ATC $20.00 D AVC $15.00 A $10.00 $5.00 D MR Price Ceiling AFC $0.00 B 15 19 36 64 75 84 91 96 QUANTITY

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