Exhibit 13-3 a Monopolist

Multiple Choice

Exhibit 13-3 A monopolist
-In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:

A) this firm would earn excess profit.
B) total revenue would equal marginal revenue.
C) the firm would suffer losses.
D) revenue would just be sufficient to cover costs.
E) revenue would just be sufficient to cover marginal cost.