What is the socially optimal price for a regulated monopoly? How does the fair return price...

What is the socially optimal price for a regulated monopoly?

How does the fair return price differ from the socially optimal price?Philosophically, do you believe a company that is producing a non-essential good should be prevented from achieving monopoly status if they abide by the law? Why or why not?

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Rahul Sunny answered 8 months ago

What is the fair -return price for a regulated natural monopoly and why is this more...

What is the fair -return price for a regulated natural monopoly and why is this more usual that the socially optimal price?

If the firm was regulated to produce at the socially optimal output

If the firm was regulated to produce at the socially optimal output ( producer’s surplus is at its maximum), how much would the firm produce?

What is the optimal price cap for a government to impose on a monopoly? Why?

1.What is a natural monopoly? Explain with a graph how a regulated natural monopoly sets its...

1.What is a natural monopoly? Explain with a graph how a regulated natural monopoly sets its price. 2.Draw a graph that shows a monopoly firm making economic profit in the short run. Be sure your diagram includes the monopolist’s demand, marginal revenue, average total cost, and marginal cost curves. Be sure to indicate the profit maximizing output and price. Are these profits sustainable in the long run?

Using an appropriate diagram, carefully explain why a natural monopoly cannot sell the socially optimal quantity...

Using an appropriate diagram, carefully explain why a natural monopoly cannot sell the socially optimal quantity of output at a single price. Also, explain how second-degree price discrimination can allow for optimal output without the need to subsidize the firm. Be sure to identify total revenue.

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What is the socially optimal price for a regulated monopoly? How does the fair return price...

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What is the fair -return price for a regulated natural monopoly and why is this more...

If the firm was regulated to produce at the socially optimal output

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