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Suppose the cost curve of the local electric company is TC = 122+5Q and the demand for electricity is estimated to be P(q) = 61 -20. If left unregulated, what is the profit- maximizing quantity and

Suppose the cost curve of the local electric company is TC = 122+5Q and the demand for electricity is estimated to be P(q) = 61 -20. If left unregulated, what is the profit- maximizing quantity and price for this natural monopolist? Enter your answers rounded to two decimal places (E.g., 15.53). Unregulated profit- maximizing quantity: 14 Unreguated profit-maximizing price: 33 What is the deadweight loss? $ 196. Given that this firm is a natural monopoly, the firm's profits at the competitive equilibrium must be: A. Negative O B. Equal to zero O C. Positive Suppose that the public utilities commission (PUC) uses a price ceiling to minimize the deadweight loss in this market. Calculate the price they would choose. Regulatory price: 9.76 (Enter your answer rounded to the nearest cent)

Apr 15 2021 View more View Less

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