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Attempts $$ Keep the Highest $\frac{0}{3}$

$7.$ 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 $$1,000,000.$ The demand function for its services has been estimated as

$P=$$$500-$$$0\mathrm{.}15Q$

The firm faces the following total cost function:

$TC=$$$50,000+$$$20Q$

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 $$200$ for each unit of output. If this price is charged, the total profit will be the firm earns a percent rate of return on its asset base.

which means

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