1. Use the above graph to answer the following questions: A. In comparison to a monopoly firm state the level of output produced and the price charged by a perfectly competitive industry.
2. State the price charged and the output produced by a monopoly.
3. State the price and output if regulators used the MC pricing rule to regulate this market.
4. Calculate the amount of economic profit made by the monopoly firm when MC pricing rule is applied.
5. State the price and output if regulators used a two-tier pricing rule to regulate this market.
6. Calculate the amount of economic profit made by the monopoly firm when a two-tier pricing rule is applied.