How the price in market is regulated by the government

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Reference no: EM13203827

A firm is analyzing if entering into a market is profitable. A brilliant young economist, who is Director of Economic Research in this firm, has estimated that demand would be Q(p) = 100-2p. She has also estimated that the cost function would be C(q) = 2q+400. Price in this market is regulated by the government and is equal to $40. Calculate the expected profits, consumer surplus and welfare for society. Will this firm enter the market?

Reference no: EM13203827

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