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Analyse the effect of regulation on the allocation

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Reference no: EM133344080

Question 1: What is the level of price, output, and amount of profit for an unregulated Monopolist?

Question 2: Using the data in the table, what are the price, output, and profit for a regulated monopolist that sets price equal to marginal cost compared with an unregulated monopolist?

Question 3: Using the data in the table, what are the price, output, and profit for a regulated monopolist that charges a "fair-return" price compared with an unregulated monopolist?

Question 4: Analyse the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? Why?

Reference no: EM133344080

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