Problem
An industry that is characterized by a decreasing cost structure has a demand curve given by P = 100 - Q and the marginal revenue curve by MR = 100 - 2Q. The marginal cost is MC = 4, and average cost is AC = 4+188/Q.
(a) Graph this cost and demand structure.
(b) Calculate the efficient output and the monopoly output for the industry.
(c) What price would the monopolist charge if he were unregulated, and what would be his profit per unit?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.