Governmental pricing regulation of a monopoly should strive to accomplish which of the following?

Question 1 options:

a)

Setting a legal price ceiling equal to the monopoly's lowest average variable cost.

b)

Setting a legal price ceiling equal to the monopoly's lowest average total cost.

c)

Setting a legal price ceiling below the monopoly's lowest average total cost.

d)

Setting a legal price ceiling below the monopoly's lowest average variable cost.

e)

Setting a legal price ceiling above the monopoly's lowest average total cost.

For a monopoly, what is the price effect?

Question 3 options:

a)

The change in total revenue caused by the new customers now paying the old price.

b)

The change in marginal revenue caused by the new customers now paying the new price.

c)

The change in total revenue caused by the new customers now paying the new price.

d)

The change in total revenue caused by old customers now paying the new price.

e)

The change in marginal revenue caused by old customers now paying the new price.

For a monopoly, what is the quantity effect?

Question 4 options:

a)

The change in total revenue caused by old customers now paying the new price.

b)

The change in marginal revenue caused by old customers now paying the new price.

c)

The change in total revenue caused by the new customers now paying the old price.

d)

The change in marginal revenue caused by the new customers now paying the new price.

e)

The change in total revenue caused by the new customers now paying the new price.