Author Question: At a certain level of production, the average total cost faced by a monopolist is 6 and the marginal ... (Read 63 times)

SO00 · **on:** Jun 29, 2018

At a certain level of production, the average total cost faced by a monopolist is 6 and the marginal cost faced by the monopolist is 4.

If the government decides to regulate the market by setting the price at the efficient price, the good will be sold at a price of: A) 2 per unit.
B) 4 per unit.
C) 6 per unit.
D) 10 per unit.

Question 2

Refer to the scenario above. Which of the following is likely to happen if Elly is known to be vengeful?

A) Neither of them will make money.
B) Only Elly will make money.
C) Only Elly's employee will make money.
D) Both Elly and her employee will earn money.