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Problem 2 g 15 Points! The cost structure of the Washington Suburban Sanitary Commission (WSSC, a water company from the DC area) is given by
Problem 2 g 15 Points! The cost structure of the Washington Suburban Sanitary Commission (WSSC, a water company from the DC area) is given by (IQ) = 20:; + 50. The firm faces a market demand curve given by Q = 30 P. a) Calculate the deadweight loss and surpluses (producer and consumer}. Interpret your answers (5 points}. b) What should be the regulated price for this market? And what are the problems faced by a regulator when establishing this price? Interpret your answers {5 points). c) During the pandemic, the demand for water has increased 20%, how would your previous answers for letters a and b change? Interpret your answer (5 points)
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