Suppose a firm has a cost curve equal to Cost = 800 + 15q. 800 Marginal Cost = 15, and the Average Cost = + 15. The inverse demand curve is p = 400 - 4q. So Marginal Revenue = 400 - 8q. If regulators set the price equal to the marginal cost, what would be the firm's loss? S (round your answer and any intermediate calculations to two decimal places). If the regulators set the price equal to the average cost, what would be the price? S (round your answer and any intermediate calculations to two decimal places). What would be the deadweight loss in this case of average cost price regulation? $ (round your answer and any intermediate calculations to two decimal places).

Suppose a firm has a cost curve equal to Cost = 800 + 15q. 800 Marginal Cost = 15, and the Average Cost = + 15. The inverse demand curve is p = 400 - 4q. So Marginal Revenue = 400 - 8q. If regulators set the price equal to the marginal cost, what would be the firm's loss? S (round your answer and any intermediate calculations to two decimal places). If the regulators set the price equal to the average cost, what would be the price? S (round your answer and any intermediate calculations to two decimal places). What would be the deadweight loss in this case of average cost price regulation? $ (round your answer and any intermediate calculations to two decimal places).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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