at a price of . The problem with capping prices at marginal cost is that $12 $15 $6 d. If the gove $21 ows firms to charge no more than their average total costs of production, units will be sold at a price of . The problem with capping prices at average total cost is that 5 $21 8 $6 7 Graphically, deadv $12 is the area between the demand and LMC (supply) curves over the ui 12 tput not produced, but that $15 ompetitive conditions. There is no deadweight loss in this case because output is at the competitive level u ricing rule, P = LMC. e. In the graph, shade the areas representing deadweight loss under the other two pricing regimes