Problem
The price of wholesale milk dropped by 30.3% in 1999 as the Pennsylvania Milk Marketing Board lowered the regulated price. The price to consumers fell by substantially less than 30.3% in Philadelphia. Why? Hint: Show that a monopoly will not necessarily lower its price by the same percentage as its constant marginal cost drops.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.