There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Lake Wobegon Electric's (LWE) cost of producing electricity is Q-50-P. TC=575+Q. a. If the regulators of LWE want to make sure that there is no deadweight loss in this market, what price will they force LWE to charge? What will output be in that case? Calculate consumer surplus and LWE's profit with that price. (Round all responses to two decimal places.) The regulated price would be $ and the firm would produce units of electricity.

There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Lake Wobegon Electric's (LWE) cost of producing electricity is Q-50-P. TC=575+Q. a. If the regulators of LWE want to make sure that there is no deadweight loss in this market, what price will they force LWE to charge? What will output be in that case? Calculate consumer surplus and LWE's profit with that price. (Round all responses to two decimal places.) The regulated price would be $ and the firm would produce units of electricity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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