Question: June Neptune owns the property with the only swimming hole in the isolated town Lone Spring, making her a monopoly supplier of outdoor swimming.

June Neptune owns the property with the only swimming hole in the

June Neptune owns the property with the only swimming hole in the isolated town Lone Spring, making her a monopoly supplier of outdoor swimming. The daily inverse demand curve for entry to the swimming hole is P = 10.05Q, where is the number of customers who seek entry at entry price P. Ms. Neptune's cost function is C (Q) = .075Q If the Lone Spring town council decides that it wants to regulate the swimming hole entry price to maximize total surplus, what entry price should it set? P=0 P = 5 P = 7.50 P = 2.50

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