c. If the firm is regulated and required to use marginal-cost
pricing, what is the predicted price, output, and profits?
d. If the firm is regulated and required to use average-cost
pricing, what is the predicted price, output, and profits?
e. What is an important problem with the regulatory policy
in part (c)?
f. What is an important problem with the regulatory policy
in part (d)?
rishikesh
(rishikesh)
#1