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3 micro economics seminar Suppose that P equals 100 minus Q comma space M R equals 100 minus 2 Q comma space T C equals
3 micro economics seminar Suppose that P equals 100 minus Q comma space M R equals 100 minus 2 Q comma space T C equals 20 plus Q to the power of 2 space end exponent comma space M C equals 2 Q , and Suppose the government wants to eliminate the deadweight loss by imposing a price ceiling. What price could the monopoly set in order that the monopoly produces as close as possible to the efficient (welfare maximizing) output while still ensuring that the monopoly is not driven out of business? What is the associated quantity produced and profit? P=75, Q=25, Profit=1092 P=66.7, Q=33.3, Profit=1230 P=75, Q=25, Profit=1230 P=66.7, Q=33.3, Profit=1092
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