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MrsAngelD MrsAngelD
wrote...
Posts: 322
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6 years ago
A monopoly faces an inverse demand curve of P = 100 - 2Q. The marginal cost curve is
MC = .5Q. What government price ceiling would represent optimal price regulation?
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
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wrote...
6 years ago
Setting P = 100 - 2Q = .5Q = MC, the optimal price ceiling is $40.
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