ZuoTi.Pro
Question
please make sure you answer all the questions, thank you
9. Regulating a natural monopoly Consider the local telephone company, a natural monopoly. The following araph shows the mont
Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without cons
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

PROFIT MAXIMIZATION (MR=MC) P = $60 ,0=6, PROFIT=CP-ATC) PROFIT = $120 dong oun : Operate MC PRICING (p=MC) P=$30, 0= 12, Pro

1 5
Add a comment
Answer #2

All of the calculations are correct. But, the quantities, written in "tens-place", ought to be written in "thousands-place" such that 6 is equal to 6,000, etc.

1 0
Add a comment
Know the answer?
Add Answer to:
please make sure you answer all the questions, thank you 9. Regulating a natural monopoly Consider...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 9. Regulating a natural monopoly Consider the local cable company, a natural monopoly

    9. Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. Complete the first row of the following table. Suppose that the government forces the monopolist to set the price equal to marginal cost. Complete...

  • Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for...

    Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), Its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE (Dollars per month) 200 180 ATC 160 140 120 100 Demand 80 60 40 MC 20 MR - 0 6 12 18 24 30 36 42...

  • Consider the local telephone company, a natural monopoly. The following graph shows the monthly demand curve for phone services and the company's marginal revenue (MR)

     9. Regulating a natural monopoly Consider the local telephone company, a natural monopoly. The following graph shows the monthly demand curve for phone services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. Complete the first row of the following table. Complete the second row of the previous table. Suppose that the government forces the monopolist to set...

  • Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services

     16. Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services, the company's marginal-revenue (MR), marginal-cost (MC), and average-total-cost (ATC) curves. Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. Complete the first row of the following table. Suppose that the government forces the monopolist to set the price equal to marginal cost. Complete the second row of the previous...

  • Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for...

    Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE, COST, MR (Dollars per month) 100 90 80 70 60 Demand 50 40 30 ATC 20 MC 10 MR 54 60 30 36 42 48 0...

  • The column choices are the same for each, I have posted a picture of each columns...

    The column choices are the same for each, I have posted a picture of each columns choices as they can be used for that same column. Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. PRICE (Dollars per subscription) III -- ATC — MRIND 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands...

  • 8. Natural monopoly analysis

    8. Natural monopoly analysisThe following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.Monopoly Outcome024681012141618201009080706050403020100PRICE (Dollars per subscription)QUANTITY (Number of subscriptions)DMRMCATCWhich of the following statements are...

  • Please graph clearly with labels!!! Thank you! Tennessee Subway Corporation is a natural monopoly. The graph...

    Please graph clearly with labels!!! Thank you! Tennessee Subway Corporation is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Price and cost (dollars per month) Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1 The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a...

  • The following graph shows the demand (D) for cable services in a particular town. The graph...

    The following graph shows the demand (D) for cable services in a particular town. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. PRICE AND COSTS (Dollars per subscription P4 ATC PI Mc MR 1 02 03 QUANTITY İ Number of subscriptions! Based solely on the graph, which of the following prinopal tvpes of barriers to entry is the natural...

  • The graph below depicts the cost curves of ABC Water and Heat. ABC has a natural...

    The graph below depicts the cost curves of ABC Water and Heat. ABC has a natural monopoly in natural gas delivery in its immediate area. Monopoly pricing Marginal cost pricing Average cost pricing Price ($/MMBTU) Average total cost Marginal cost Marginal revenue Demand Quantity (MMBTU) a. Place the point labelled “Monopoly pricing" at the appropriate coordinates to indicate the monopoly price and quantity b. Suppose the government tries to achieve allocative efficiency (P = MC) by imposing a marginal cost...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT