Calculate consumer surplus and lwes profit

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Reference no: EM13199589

There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q = 50 - P. Lake Wobegon Electric's (LWE) cost of producing electricity is
TC = 500 + Q.
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.

Reference no: EM13199589

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