Only typed answer and please don't use chat gpt Suppose a firm has a cost curve equal to Cost = 800 + 15q.800Marginal Cost = 15, and the Average Cost =qThe inverse demand curve is p = 400 - 4q.So Marginal Revenue = 400 - 8q.+ 15.If regulators set the price equal to the marginal cost, what would be the firm's loss? $any intermediate calculations to two decimal places).If the regulators set the price equal to the average cost, what would be the price? $intermediate calculations to two decimal places).What would be the deadweight loss in this case of average cost price regulation? $intermediate calculations to two decimal places).☀(round your answer and(round your answer and any(round your answer and any

A cost curve is a graph that shows the costs of production as a function of the overall quantity…

Answered: Suppose a firm has a cost curve equal…

Suppose a firm has a cost curve equal to Cost = 800 + 15q. 800 Marginal Cost = 15, and the Average Cost = q The inverse demand curve is p = 400 So Marginal Revenue = 400 8q. 4q. + 15.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 4E

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Question

Only typed answer and please don't use chat gpt

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

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