What would happen to the equilibrium price and quantity

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Question - Based on the information in the "Botox" Mini-Case, what would happen to the equilibrium price and quantity if the government had set a price ceiling of $200 per vial of Botox? What welfare effects would such a policy have?

That all that there is for this question.

(This is what the professor told us to do but I still do not understand the question; you need to study the difference between a perfectly competitive firm and a monopoly with specific attention to where the demand curve is in relationship to the average total cost curve. There is a reason why it is at the very bottom for the perfectly competitive firm but higher up for a monopoly. Check it out on their respective graphs in my Power Point. It has to do with the differences between perfect competition and monopoly.

Reference no: EM132194179

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