Business, 22.11.2019 22:31 PolinaZagorodniy123
There are 10 households in lake? wobegon, minnesota, each with a demand for electricity of upper q equals 50 minus upper p. lake wobegon? electric's (lwe) cost of producing electricity is tc equals 575 plus 2 upper 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. ? (round all responses to two decimal? places.)
the regulated price would be
and the firm would produce nothing units of electricity.
total consumer surplus would be
and the firm would earn a profit.
b. if regulators want to ensure that lwe? doesn't lose? money, what is the lowest price they can? impose? calculate? output, consumer? surplus, and profit. is there any deadweight? loss? ? (round all responses to two decimal? places.)
the regulated price would be
and the firm would units of electricity.
total consumer surplus would be
, and the firm would earn a profit.
? finally, there will be a deadweight loss of
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There are 10 households in lake? wobegon, minnesota, each with a demand for electricity of upper q...
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