Use the accompanying graph to answer the questions that follow. A graph summarizes the demand and costs for a firm."The horizontal axis labeled quantity ranges from 0 to 22 in increments of 2. The vertical axis labeled price ranges from 0 to 220 in increments of 20. A line labeled M R begins at the point (0, 200) goes down to the right and ends at the point (10, 0). A second line labeled D begins at the point (0, 200) goes down to the right and ends at the point (20, 0). An upward-facing curve labeled M C begins at the point (2, 80) goes down to the right with decreasing steepness to a low point at (7.5, 50) then goes up to the right with increasing steepness and ends at the point (19, 180). A second upward-facing curve labeled A T C begins at the point (3, 150) goes down to the right with decreasing steepness to a low point at (14, 95) then goes up to the right with increasing steepness and ends at the point (19, 110). The curve M C intersects the line M R at (7.5, 50), the line D at (12.5, 75) and the curve A T C at (14, 95). The curve A T C intersects the line D at (10, 100). All values are approximated." a. Suppose this monopolist is unregulated. (1) What price will the firm charge to maximize its profits? Instructions: Enter your response as a whole dollar value. $ (2) What is the level of consumer surplus at this price? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ b. Suppose the firms price is regulated at $80. (1) What is the firms marginal revenue if it produces 7 units? Instructions: Enter your response as a whole dollar value. $ (2) If the firm is able to cover its variable costs at the regulated price, how much output will the firm produce in the short run to maximize its profits? units (3) In the long run, how much output will this firm produce if the price remains regulated at $80?

Quantity Quantity