Mathematics, 04.04.2020 14:55 meganwintergirl
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs
of $30 million per year and a variable cost of $6 per bag no matter how many bags are produced
Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places
a. If this firm kept on increasing its output level, would ATC per bag ever increase?
No
Is this a decreasing-cost industry?
Yes
b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge?
?? per bag
At that price, what would be the size of the firm's profit or loss?
At that price, the firm's floss
equals ??? Million
Answers: 2
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