Question
Given MC = S^-1(q) = q +3 and D^-1(q) = 11 - q/3. The firm is an ordinary monopolist. What price ceiling would make the
Given MC = S^-1(q) = q +3 and D^-1(q) = 11 - q/3. The firm is an ordinary monopolist. What price ceiling would make the market efficient. Suppose that the price ceiling cannot sinpky be imposed by fiat, but the government must compensate the monopolist for any loss in profits compared to profits without the ceiling. How much will the compensation be?
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
