Attempts $$ Keep the Highest $/3$

$7.$ Exercise $11\mathrm{.}8$

The Public Service Company of the Southwest is regulated by an elected state utility commission. The firm has total assets of $$500,0$ function forlits services has been estimated as

$P=$$$250-$$$0\mathrm{.}15Q$

$q,$

The firm faces the following total cost function:

$TC=$$$25,000+$$$10Q$

In an unregulated environment, the firm would charge $$ and produce $$ units.

The total profit at this price$-$output level is $-$ which means the firm earns a $$ percent rate of return on its asset base.

The firm has proposed charging a price of $$100$ for each unit of output. If this price is charged, the total profit will be $$ which me the firm earns a $$ percent rate of return on its asset base.