Determine what is the total social welfare

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Reference no: EM13239750

A gas utility serves a small town with natural gas. The total cost function for the utility as a function of the amount Q of gas sold is:

TC(Q) = 50,000 + 300Q + 0.4Q2

The demand function for the customers is Q = 374 - 0.22P

Suppose that the gas utility operates as a pure monopoly, setting price and output so as to maximize profit. What P and Q will be chosen? What will be the total revenue, total cost, profit, and consumers surplus at this price? What is the total social welfare (consumer + producer surplus)?

Reference no: EM13239750

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