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TC=575+2Q

TC=575+2Q

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
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There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q= 60 -P. Lake Wobegon Electric's (LWE) cost of producing electricity is TC 575+2Q 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 $ 2, and the firm would produce 580 units of electricity Total consumer surplus would be $ 16820 , and the firm would earn a $ - 575 profit. b If regulators want to ensure that LWE doesn't lose money, what is the lowest price they can impose? Calculate output, consumer surplus, and profit. Is there any deadweight loss? (Round all responses to two decimal places.) The regulated price would be $ and the firm would produce units of electricity Total consumer surplus would be $ and the firm would earn a $ profit. Finally, there will be a deadweight loss of $
Transcribed Image Text:There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q= 60 -P. Lake Wobegon Electric's (LWE) cost of producing electricity is TC 575+2Q 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 $ 2, and the firm would produce 580 units of electricity Total consumer surplus would be $ 16820 , and the firm would earn a $ - 575 profit. b If regulators want to ensure that LWE doesn't lose money, what is the lowest price they can impose? Calculate output, consumer surplus, and profit. Is there any deadweight loss? (Round all responses to two decimal places.) The regulated price would be $ and the firm would produce units of electricity Total consumer surplus would be $ and the firm would earn a $ profit. Finally, there will be a deadweight loss of $
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