1. Monopolist faces demand curve P = 122 - 0.2Q and a total cost curve: TC = 2Q. Government regulate this monopolist and require them to charge a price equal to average cost. What is the price equal to and what profit would the monopolist make?
2. Monopolist faces a demand curve: P = 180 - 2Q and a total cost curve: TC = 20Q. If monopolist was regulated with average cost pricing so as to make a normal rate of return, what would the price the government requires the monopolist to chargge? and what would be the monopolists profits?
3. A monopolist faces market demand curve: P = 120 -2Q. it faces a total cost curve: TC = 2Q. Government regulate monopolist to force them to charge a price equal to MC. What would the price be? and what would the monopolist make in profits?