Question

Suppose a firm has a cost curve equal to C=6400 + 50Q. The firms demand curve is p=450-4Q. (Round all numeric responses to two decimal places.) If regulators set the price equal to the marginal cost, what would be the firms loss?s

If the regulators set the price equal to the average cost, what would be the price?
What would be the deadweight loss in this case of average cost price regulation?

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Answer #1

Firm srso TR-P. P-ACSince P=AC/ then ce cannot be 8pんfl^ . So we ignore 13 20.SX(loo ㅡ g*) (130-Sa丿 = $800

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