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1 suppose that a monopoly faces the demand curve given by p

1. Suppose that a monopoly faces the demand curve given by: P = 200-2Q.

It has a total cost function given by TC(Q) = 25 + 4Q^2

a. Find the maximum level of profit.

b. How does the monopoly price change if the total cost function changes to TC(Q) = 25 + 2Q^2

Why do you get this effect?

2. It has been said that economic regulation insulates firms from competition, and that this insulation from competition leads to firms being inefficient.

Does history bear this claim out?

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Business Management: 1 suppose that a monopoly faces the demand curve given by p

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