1 1 Please refer to the background information below to answer question Godzilla Electric (GE) is...

 

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1 1 Please refer to the background information below to answer question Godzilla Electric (GE) is the monopoly supplier of electricity to households on Utopia Island. It faces a demand curve, a marginal cost curve, and a fixed cost given by following equations Demand: Marginal Cost: Q = 101 -0.02P MC = 80 Fixed Cost: FC = 240 thousand megawatt-hours per day dollars thousand dollars The profit-maximizing GE would produce [ Answer44A = 49.70 ] thousand megawatt-hours of electricity per day, and set a price of [ Answer44B = 2565.00 ] dollars per megawatt-hour. The price elasticity of demand at the profit-maximizing quantity is [ Answer45 = -1.03 ] The markup at the profit-maximizing quantity is [ Answer46 = 3106.25 ] percent. The profit at the profit-maximizing quantity is [ Answer47 = 123264.50] thousand dollars per day. The socially efficient quantity is [ Answer48 = 99.40 ] thousand megawatt-hours. Compared to the socially efficient quantity, monopoly pricing leads to a deadweight loss of [ Answer 49 = 61752.25 ] thousand dollars per day. The Utopia Government is considering a Scheme of Control by setting the maximum price per megawatt-hour of electricity to be the average of profit-maximizing price and the marginal cost. Under this scheme of control, GE will choose to produce [ Answer50 = 74.55 ] thousand megawatt-hours. Suppose any Scheme of Control (such as the one in the last question) is feasible only with an implementation cost of $C per day. At its best, the government is capable of setting up a specific Scheme of Control (need not be the same as the one in the last question) to achieve the socially efficient quantity. From the society's perspective, the government should implement such Scheme of Control only if C is less than or equal to [ Answer51 = 61752.25 ] thousand dollars per day. 1 1 Please refer to the background information below to answer question Godzilla Electric (GE) is the monopoly supplier of electricity to households on Utopia Island. It faces a demand curve, a marginal cost curve, and a fixed cost given by following equations Demand: Marginal Cost: Q = 101 -0.02P MC = 80 Fixed Cost: FC = 240 thousand megawatt-hours per day dollars thousand dollars The profit-maximizing GE would produce [ Answer44A = 49.70 ] thousand megawatt-hours of electricity per day, and set a price of [ Answer44B = 2565.00 ] dollars per megawatt-hour. The price elasticity of demand at the profit-maximizing quantity is [ Answer45 = -1.03 ] The markup at the profit-maximizing quantity is [ Answer46 = 3106.25 ] percent. The profit at the profit-maximizing quantity is [ Answer47 = 123264.50] thousand dollars per day. The socially efficient quantity is [ Answer48 = 99.40 ] thousand megawatt-hours. Compared to the socially efficient quantity, monopoly pricing leads to a deadweight loss of [ Answer 49 = 61752.25 ] thousand dollars per day. The Utopia Government is considering a Scheme of Control by setting the maximum price per megawatt-hour of electricity to be the average of profit-maximizing price and the marginal cost. Under this scheme of control, GE will choose to produce [ Answer50 = 74.55 ] thousand megawatt-hours. Suppose any Scheme of Control (such as the one in the last question) is feasible only with an implementation cost of $C per day. At its best, the government is capable of setting up a specific Scheme of Control (need not be the same as the one in the last question) to achieve the socially efficient quantity. From the society's perspective, the government should implement such Scheme of Control only if C is less than or equal to [ Answer51 = 61752.25 ] thousand dollars per day.

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solution aThe profitmaximizing GE would produce 4970 thousand megawatthours of electricity per day a... View the full answer