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Price Graph is not drawn to scale! but 1443 Demand and Marginal Revenue ' Curves are linear 50 30 50 70. C A Quantity a.
Price Graph is not drawn to scale! but 1443 Demand and Marginal Revenue ' Curves are linear 50 30 50 70. C A Quantity a. Given the above information and the graph, write the equation for the market demand curve in slope intercept form. Explain how you found your answer. You will need to provide a numeric value for \"A in the above graph. b. Suppose that this monopolist is not regulated. Explain how this monopolist will determine its prot maximizing output and price. Assume that the monopolist is a single price monopolist. After explaining the process, identi the unregulated monopolist s quantity and price. c. Will the monopolist described in (13) earn positive, negative: or zero economic prots? Explain your answer. (1. Suppose that this monopolist is regulated with a MC pricing regulation. This insures that the monopolist produces the socially optimal amount of the good, but will require a subsidy for the producer since economic prots will be negative. From the graph and your prior work, identi' (that is= provide a mimeric value) the socially optimal amount of the good. Then amend the graph to show the amount of total subsidy this monopolist will need to receive if they are to produce the socially optimal amount of the good. e. Suppose that this monopolist is regulated with AC pricing regulation. This insures that the monopolist produces the level of output where its economic prot is equal to zero. From the graph and your prior work: identify (that is, provide a numeric value) of the quantity the monopolist will produce if it is regulated to produce that level of output where the monopolist breaks even. Amend the graph to provide this numeric value. 6. Use the following graph of a natural monopolist to answer this next question. The graph depicts the market for a monopolist where LRATC is the long-run average total cost curve, MC is the marginal cost cmve, and Demand is the market demand for the product
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