Answer questions 13. and 14. by referring to the graph below. $10 6 Price MC -t

Question

Answer questions 13. and 14. by referring to the graph below. $10 6 Price MC -t D=P 10 20 30 40 50 60 70 80 MR Quantity 13.a. $9 3.--What will the price be, assuming this natural monopoly is not regulated? b. $7 c. $4 d. $3 14.--what will the price be, assuming this natural monopoly is regulated at the optimal price? a. $9 b. $7 c. $4 d. $3 Increasing agricultural productivity combined with inelastic demand for farm products has led to a. higher real prices for agricultural products. b. higher revenue for farmers. c. lower prices and less revenue for farmers. 15

Explanation / Answer

13) price will be 9 because monopolybproduces at a point wherr MR=MC

14)4. Optimal or efficient pricing is at a point where MC=Price

15)when demnad is inelastic, increase in supply will decrease price and leads to less revenue. Ans is C

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