Question: Can you please help me with this question, whilst explaining what you are doing and why with reference to the theory and techniques. Please do

Can you please help me with this question, whilst explaining what you are doing and why with reference to the theory and techniques. Please do not just report mathematical steps without any explanation. And please use graphs and, when possible and appropriate, examples.

Question:

Consider a monopolist with linear (inverse) demand p = a - bQ, a>0, b>0, and constant average and marginal cost, c, with a>c>0.

Describe two ways the government could improve the allocative efficiency in this market.

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