P=2400-8Q TC-1200+400Q 1. Marginal revenue equation MR- 2. Marginal Cost MC=_ 3. How much would the company produce if it is not regulated by the government Q=_

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Let the demand function and the total cost functions of a NATURAL
Monopoly be given by the following equations:
P=2400-8Q
TC-1200+400Q
1. Marginal revenue equation MR-
2. Marginal Cost MC=________
3. How much would the company produce if it is not regulated by
the government Q=_
4. At what price would it sell its product if not regulated P=_
5. What would the Average cost equation be?
ATC=LRAC=_
6. How much would it produce and at what price if it was regulated
with the Average cost pricing rule QR¹=_
PRI=
In such
case the economic profits would be.
7. How much would be produced and at prie if it was regulated with
the Marginal Cost Pricing rule? QR²=
pR2=
in such
case would the company have gains or losses and of what
magnitude?.
8. Mention the subsidy that the government would need to give the
company in such case
9. Graph your results either in one single graph or in three separate
graphs your previous results.
Transcribed Image Text:Let the demand function and the total cost functions of a NATURAL Monopoly be given by the following equations: P=2400-8Q TC-1200+400Q 1. Marginal revenue equation MR- 2. Marginal Cost MC=________ 3. How much would the company produce if it is not regulated by the government Q=_ 4. At what price would it sell its product if not regulated P=_ 5. What would the Average cost equation be? ATC=LRAC=_ 6. How much would it produce and at what price if it was regulated with the Average cost pricing rule QR¹=_ PRI= In such case the economic profits would be. 7. How much would be produced and at prie if it was regulated with the Marginal Cost Pricing rule? QR²= pR2= in such case would the company have gains or losses and of what magnitude?. 8. Mention the subsidy that the government would need to give the company in such case 9. Graph your results either in one single graph or in three separate graphs your previous results.
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