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 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.