Suppose A Monopolistic Local Electric Firm Faces A Demand Curve Given By P 120 4q Suppose The Total Cost For The Monopo 1 (11.29 KiB) Viewed 39 times
What is the socially optimal level of output?
And, can the socially optimal level be the perfect competition
long run equilibrium?
a. yes
b. no
c. uncertain
d. depends on the quality produced
Suppose a monopolistic local electric firm faces a demand curve given by P-120-4Q. Suppose the total cost for the monopolist in the long run is given by LTC-400+4Q, and MC is fixed at 4$ per unit. MR is given by P=120-8Q
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