Figure 15-2 (attached)24. Refer to Figure 15-2. If a regulator requires the firm to charge a marginal cost price, what price will the firm charge? The graph illustrated is a typical economic diagram used to explain the concepts of demand, marginal revenue, average total cost, and marginal cost.### Axes- **Vertical Axis (Y-axis):** Represents the price level, ranging from 0 to 10.- **Horizontal Axis (X-axis):** Represents the quantity of goods, ranging from 0 to 10.### Curves1. **Demand Curve (D):** Downward sloping from left to right, indicating the relationship between price and quantity demanded.2. **Marginal Revenue Curve (MR):** Lies below the demand curve, also sloping downward. It shows the additional revenue gained from selling one more unit.3. **Average Total Cost Curve (ATC):** U-shaped, typically above the marginal cost curve, reflecting the average cost per unit at different levels of production.4. **Marginal Cost Curve (MC):** Upward sloping, showing the cost to produce an additional unit of output.### Intersection Points- **Quantity at maximum profit (q*):** The point where the marginal cost curve intersects the marginal revenue curve. This is where profit maximization occurs. ### Additional Information- **Price Line at Q (Price = 5.25):** At a certain level of quantity, the price corresponds to the intersection with the demand curve. This graph illustrates how businesses determine optimal pricing and production levels to maximize profits, taking into account their costs and the market demand.

please find the answer below.If a regulator requires the firm to charge a marginal cost price, what price will the firm charge? Answer: Firm will charge price = $1. In marginal cost pricing firm produces where MC cuts demand curve and charges price that is corresponding to that quantity. Here marginal cost pricing quantity is 9.

Answered: Price 10 4. 25 ATC MR-- MC 9 10 Daantit…

Business

Economics

Price 10 4. 25 ATC MR-- MC 9 10 Daantit 1 2 3 4 56 15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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