Regulating a monopoly

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Regulating a monopoly

Suppose that a monopolist sells a product to consumers with an aggregate inverse demand that is downward sloping in quantity, P (Q) = 1000 − 4Q. The total cost of producing Q units is C(Q) = Q2.

a) What is the unregulated price-quantity pair?

b) At this equilibrium, what are CS, PS, and W?

c) What price ceiling or floor maximizes W?

d) What are CS, PS and W at this equilibrium?

Reference no: EM13831858

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