The Following Graph Gives Cost and Revenue Data for a Monopolist

question 12

Multiple Choice

The following graph gives cost and revenue data for a monopolist:

-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its price and output?

• A)$10 and 70.
• B)$25 and 110.
• C)$30 and 100.
• D)$45 and 70.
• E)$60 and 40.

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Definitions:

Compounded Semi-Annually

The process of adding interest to the principal sum twice a year, where interest earns more interest in subsequent periods.

Compounded Quarterly

Interest is calculated four times a year on the initial principal and the added interest from previous periods.

20 Years

A period or duration of two decades.

Compounded Monthly

A term referring to the calculation of interest on the initial principal and also on the accumulated interest from previous periods, computed each month.