Question
(a) What is the level of price, output, and amount of profit for an unregulated monopolist that produces where MR=MC? (b) Using the data in
(a) What is the level of price, output, and amount of profit for an unregulated monopolist that produces where MR=MC?
(b) Using the data in the table, what is the price, output, and profit for a regulated monopolist that sets a "socially optimal" price i.e. where P=MC?
(c) Using the data in the table, what is the price, output, and profit for a regulated monopolist that charges a "fair-return" price i.e. where P=ATC?
(d) Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? Why?
Can u write the brief formula for each question please? Thank yuou
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