11) Suppose the city of LA is considering a proposal to award an exclusive contract to an electricity provider. The demand function has been estimated to be P = 60 – 2Q and the total cost function has been estimated to be TC(Q) = 240 + 0.5Q² where Q is the number of internet contracts (in thousands) and P is the price of monthly internet service. a. What would be the allocatively efficient price and quantity? b. What price and quantity would be expected if the firm can operate completely unregulated? What is the firm's profit? What is the consumer surplus? c. What would be the minimum price charged to the marginal consumer if the firm can execute first degree

11) Suppose the city of LA is considering a proposal to award an exclusive contract to an electricity provider. The demand function has been estimated to be P = 60 – 2Q and the total cost function has been estimated to be TC(Q) = 240 + 0.5Q² where Q is the number of internet contracts (in thousands) and P is the price of monthly internet service. a. What would be the allocatively efficient price and quantity? b. What price and quantity would be expected if the firm can operate completely unregulated? What is the firm's profit? What is the consumer surplus? c. What would be the minimum price charged to the marginal consumer if the firm can execute first degree

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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