You have a monopoly for smart econ answers. The marginal cost per answer is $3 a

Question

You have a monopoly for smart econ answers. The marginal cost per answer is $3 and there is a fixed cost of $24. The demand is P = 30-3 Q which is also given in the table below. You can solve the problem either with the table or you can try to solve it with equations if you like! What is you profit maximizing price and quantity? Do you operate a natural monopoly? Explain! If a regulator wants you to produce at the socially optimal level of output, how much would he tell you to charge? How many answers could you sell? How much would be your profit or loss? If a regulator just wants you to make zero profit, how much would he tell you to charge? How many answers could you sell? How much would be your profit or loss? Show the results from a), c) and d)in a graph that shows all relevant curves actually matches the numbers in this problem. Also show the dead weight loss for the unregulated case and the regulated zero-profit case.

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couldnt read your photo, please put a zoomed one

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