Suppose a natural monopolist has fixed costs of $15 and a constant marginal cost of $3. The demand for the product is as follows:

Price (per unit) $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 Quantity demanded

(units per day) 0 2 4 6 8 10 12 14 16 18 Under these conditions,

(a) What price and quantity will prevail if the monopolist isn’t regulated?

(b) What price–output combination would exist with efficient pricing (p = MC)?

(c) What price–output combination would exist with profit regulation (zero economic profits)?