Could you explain your work process ?

(a) What is the level of price, output, and amount of profit for an unregulated

Monopolist?

(b) Using the data in the table, what are the price, output, and profit for a regulated

monopolist that sets price equal to marginal cost compared with an unregulated

monopolist?

(c) Using the data in the table, what are the price, output, and profit for a regulated

monopolist that charges a "fair-return" price compared with an unregulated

monopolist?

(d) Analyse the effect of regulation on the allocation of resources. Which situation is

most efficient? Which situation is most likely to be chosen by government?

Why?