Answered You can buy a ready-made answer or pick a professional tutor to order an original one.
This assignment is optional: If you answer it well enough, it will replace your worst assignment. A natural monopolist with total cost function C= 1000+20Q, where Q is the quantity produced, operates
A natural monopolist with total cost function C= 1000+20Q, where Q is the quantity produced, operates in a market by the demand function Q= 100 – P, where Q is the Quantity demanded and P is the price.
1. If the monopolist is the subjects to marginal cost regulation, what is profit and the consumer surplus?
2. If the monopolist is subjects to average pricing regulation, how much it would produce and what is the prices it would charge? What is the consumer surplus?
3. If each dollar of taxes costs the economy $1.2, which is above two types of regulation would be preferred?
- @
- 3867 orders completed
- ANSWER
-
Tutor has posted answer for $10.00. See answer's preview
**** ************ ******** *** * 100 – * then P * *** *** ****** ******* ******** ** the ************** * P × * * **** **** ** **** * **** – ********** ******* ******** ** the *********** MR * ***** ******** * *** ***** MR * ************** cost ******** ** *** ********** ** * **** **** **** * ******** ************ ******* that the monopolistic produce ***** ** * MCThe ******** **** regulation ***** * P * ***** *** * = 20QQ * ***** ******** ********** ******* ******** ** * * ** while ***** ** **** ****** monopolistic Profit at *** *********** * TR *** TCP * 20 × 80 – (1000 – 20Q)P = **** *** **** *** (20 ******* **** *** **** – 1600)P/L = ********** ** **** ** subsidy of 1000Download ** ****** ****** *** ***
