Electricity market in Ankara is monopolistic. The monopoly faces an inverse demand curve of P = 100-2Q. The marginal cost curve is MC =.5Q. What government price ceiling would represent optimal price regulation?
Electricity market in Ankara is monopolistic. The monopoly faces an inverse demand curve of P = 100-2Q. The marginal cost curve is MC =.5Q. What government price ceiling would represent optimal price regulation?
Chapter13: Antitrust And Regulation
Section: Chapter Questions
Problem 11SQP
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