What price-output combination would exist with profit

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Reference no: EM13192462

Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2. 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? (a1) price

(b) What price-output combination would exist with efficient pricing (MC 5 p )? (b1) price

Reference no: EM13192462

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