Monopolist faces an inverse market demand

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Reference no: EM13869136

A monopolist faces an inverse market demand P(Q) = 200 − 1 2Q and a marginal cost of MC(Q) = 20 + Q.

(a) What is the unregulated monopolist’s optimal quantity?

(b) What would an appropriate regulatory instrument to bring this market back to efficiency?

(d) What is the increase in welfare resulting from regulation?

Reference no: EM13869136

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