There is a funda m private and a a fundamental difference in the behaviour of government-owned monopoly in the provision of Service. the The profit is maximised by private monopoly. public monopoly choose to produce up to the point where its profit is zero, with the maximum with the maximum possible out put. The market for a service is characterised by the following demand curve : p = 200- 1/2 g 4 The cost The variable cost is Rs 25 per unit and the fixed a is Rs 9000. (") Billing losses of 20% Find the equilibrium output and price in each Also, quantify the consumer Surplus in each case. The public monopoly has an inefficient management which leads to the following: (ii) Over-employment leading to a rise in the variable cost of 30% What is now the consumer casc. ?