1. If government regulates the firm above by imposing price ceiling at the socially optimal price, the firm will produce _________ units to maximize profit and will charge price______ per unit (you can divide the scale)

1. How will the government regulation affect market efficiency? Consumer surplus and economic surplus? Explain.

e. If government regulates the firm above by imposing price ceiling at fair return price, the firm will

produce _________ units, charge price______ per unit, and earn economic profit_____________