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What are the price charged

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Reference no: EM132156912

The market demand for recorder is given by: P = 260 - 5Q

Currently, Firm A is the single seller in the market, and its total cost is: TC = 1125 + 10Q

Please show me all steps for Questions below. I don't know how to calculate Average Cost, so I'm stuck on B and C.

if it helps, Answer is Q=45;P=35 for B and DWL=62.5 for C

In attempt to increase output, the government decides to regulate the industry through an average-cost pricing.

b) What are the price charged and the quantity sold after the regulation?

c) What is the efficiency loss after the regulation? What is the change in total surplus?

d) Now, suppose it costs the government $1450 to administer and enforce the new regulation. Does it pay to regulate the industry? Yes/No, explain

Reference no: EM132156912

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