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Suppose that 1-800 CONTACTS, a contacts lens seller with market power, faces the inverse demand, marginal revenue, total cost and marginal cost functions given below:

Suppose that 1-800 CONTACTS, a contacts lens seller with market power, faces the inverse demand, marginal revenue, total cost and marginal cost functions given below:

If you are a regulator trying to maximize social efficiency, what (if any) price ceiling would you impose on 1-800 CONTACTS?

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