Government realizes aforementioned situation

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Reference no: EM13800749

Now, the government realizes aforementioned situation that the one firm controls the industry. Economic officer from the government asks you to fix this problem.

(1) Provide your solution by applying the price regulation scheme and you have to give me a clear answer by graphically and numerically. Clearly report what will be changed if you implement the price regulation in this market.

(2) While you investigate this market, the other solution comes up with your mind which is the quantity regulation (e.g. Quota). Illustrate your solution verbally and numerically.

Reference no: EM13800749

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