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Question about Costs of regulation
Market demand and cost revenue relations:P=$5000 -$0.25QMR=$5000 - $0.5Q^2(squared)TC=$6,000,000 + $500Q +$0.5Q^2(squared)MC+$500+$1Q
Marginal cost: $150 per unit, OSHA mandated safety feature
A. Calculate profit-maximizing price/output combination and economic profit level before installation of the OSHA mandated shielding equipment
B Calculate same after the OSHA guidelines have been met. Who pays the economic burden of meeting OSHA guidelines?
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