The market demand for the output of a public utility is: QD = 250 - 2P
The firm's long-run average cost and long-run marginal cost functions are:
LAC = 50 - 0.125Q and LMC = 35 - 0.10Q
What price and quantity combination would result if the firm was not regulated?
What price and quantity combination would result if the firm was regulated at a price that resulted in the socially optimal level of output? What would the firm's profit be?

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The Answer of The market demand for the output of a public utility is: QD = 250 - 2P
The firm's long-run average cost and long-run marginal cost functions are:
LAC = 50 - 0.125Q and LMC = 35 - 0.10Q
What price and quantity combination would result if the firm was not regulated?
What price and quantity combination would result if the firm was regulated at a price that resulted in the socially optimal level of output? What would the firm's profit be?

The Market Demand for the Output of a Public Utility