Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission wants price to be set equal to marginal cost, the proper price and output combination to be set is:
A. price = $8; output = 30.
B. price = $5; output = 40.
C. price = $4; output = 25.
D. price = $3; output = 50.
Answer: D
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