Chapter 15, Problem 2.3PA

A

To determine

The reason for considering the firm as a natural monopoly.

B

To determine

In case of an unregulated firm, the price and output that will maximize its profit and to determine its profits and losses.

C

To determine

The price and output when the regulatory commission establishes a price with the aim of achieving Allocative efficiency and to determine the profit and loss of the firm.

D

To determine

The price and output when the regulatory commission establishes a price with the aim of allowing from a normal profit and to determine the profits or losses of the firm.

E

To determine

From the prices already calculated in part b, c and d which prices maximizes the consumer surplus and the problems at this price.