The discussion on price ceilings supposed that the medical industry faces increasing marginal costs of production. Suppose a for-profit, monopolistic hospital is experiencing economics of scale ( i. e.., downward-sloping average and marginal cost curves) in the relevant range. Show graphically and discuss in writing the problems associated with a price ceiling set where the demand curve intersect the marginal cost curve and a price ceiling set where the demand curve intersects the average cost curve. Think in terms of allocative efficiency and financial solvency.