Given the demand function calculate the marginal revenue, total revenue, demand, supply, marginal cost.
A firm that provides two goods faces the following demands:
P1 = 8 - .02Q1
P2 = 15 - .03Q2
All costs are fixed at $900 and prices in the last period were P1 = $3 and P2 = $8.
Provide the constraint that you found in part b, can the company choose prices that maximize benifits as though it were an unregulated company?
In 2-3 sentences, what is the main advantage or price-cap regulation over rate-of-return regulation?