Determine the optimum and sustainable price ceiling


Suppose a monopolist faces a market demand curve P = 100 - 2Q and has the short-run total cost function C = 640 + 20Q. How would this affect total welfare if the government imposed a maximum price on the monopolist equal to the competitive price? Is this policy sustainable in the long run? Determine the optimum and sustainable price ceiling the government could impose? 

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Macroeconomics: Determine the optimum and sustainable price ceiling
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