This is a file upload question. Please hand-write your solut…
This is a file upload question. Please hand-write your solution in a piece of paper, take a picture and upload your file (or send me through Canvas Inbox or at haruko.muratainouye@chaffey.edu). Typed answers will not be accepted! Fast-track is the train system that serves the state of Wonderland. Its costs and demand information is given below: Cost and revenue for Fast-track Q (million of riders) Price (P) Total Cost (million $) Total Revenue (million $) Marginal Cost Marginal Revenue Average Cost 1 30 20 30 — C 20 2 26 38 52 18 22 19 3 23.3 54 69.9 16 17.9 18 4 21 68 84 A 14.1 17 5 18 80 90 12 6 D 6 15 90 90 10 0 15 7 10 98 70 8 -20 14 8 6 104 48 B -22 13 Complete the table finding the values for A, B, C, and D by showing your work! You will not receive any credit if you don’t show your work! An unregulated monopoly will have how many riders (Q) and will charge each of them how much (P)? Calculate the profit or the loss by showing your work! If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects marginal cost, what would be Q and P? Calculate the firm’s profit or loss by showing your work! If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects average cost, what would be Q and P? Calculate the firm’s profit or loss by showing your work! Which one is the best option for regulation, the policy stated in part 3 or the one stated in part 4? Justify your answer!