calcula and explain, thank you
Posted: Thu May 19, 2022 8:41 am
calcula and explain, thank you
1. Market for candy (30 points] Mars is the only producer of M&Ms chocolate candies. Mars produces the candies with a total cost function TC(Q) = 100, where Q represents the number of units produced. The demand curve for M&Ms candies is Q(P) = 100 - 2P.
(c) [6 pts] Suppose the government decides to regulate the market for candies by placing a price cap at $20. That is, Mars cannot charge consumers more than $20/unit. What quantity does Mars select? Are consumers better off under this policy? Explain.
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(c) [6 pts] Suppose the government decides to regulate the market for candies by placing a price cap at $20. That is, Mars cannot charge consumers more than $20/unit. What quantity does Mars select? Are consumers better off under this policy? Explain.