Marginal revenue-total cost and marginal cost functions

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Reference no: EM131109471

Suppose that Clear Vision, Inc., a cable television carrier, has the demand, marginal revenue, total cost and marginal cost functions given below:

P = 28 - 0.0008Q

MR = 28 - 0.0016Q

TC = 120,000 + 0.0006(Q^2)

MC = 0.0012Q,

where Q = the number of cable subscribers and P = the price of basic monthly cable service. If you are a regulator trying to maximize social efficiency, what (if any) price ceiling would you impose on Clear Vision, Inc.?

Reference no: EM131109471

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