What is the total social welfare of regulatory commission

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Reference no: EM13239772

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

A state regulatory commission, reacting to complaints of high prices and excessive profits, uses its authority to compel the utility to set prices equal to the average cost of the gas sold. What price will the utility now set? What will be the total revenue, total cost, profit, and consuerms surplus at this price? What is the total social welfare?

Reference no: EM13239772

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