I am having trouble finding the answer to the question 3a on page 8. My book tells me what happens with the price ceiling is below the ATC but nothing concerning the AVC. The question is below.

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.