You are the owner of a monopoly firm. The demand curve that you face is: 100 0.5Q %3D Your Total Cost and Marginal Cost are: 1035 +10Q +0. 5Q? 10 +Q TC || MC %3D The government decides to regulate your firm and imposes the Efficient Price. What is the price you must set? Regulated Efficient price $77.5 Regulated Efficient price $55 Regulated Efficient price = $60 Regulated Efficient Price = $70

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are the owner of a monopoly firm. The demand curve that you face is:
100
0. 5Q
-
Your Total Cost and Marginal Cost are:
1035 +10Q +0. 5Q2
10 +Q
TC
|3|
MC
The government decides to regulate your firm and imposes the Efficient Price. What
is the price you must set?
Regulated Efficient price $77.5
Regulated Efficient price = $55
Regulated Efficient price = $60
Regulated Efficient Price = $70
Transcribed Image Text:You are the owner of a monopoly firm. The demand curve that you face is: 100 0. 5Q - Your Total Cost and Marginal Cost are: 1035 +10Q +0. 5Q2 10 +Q TC |3| MC The government decides to regulate your firm and imposes the Efficient Price. What is the price you must set? Regulated Efficient price $77.5 Regulated Efficient price = $55 Regulated Efficient price = $60 Regulated Efficient Price = $70
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