Question: Consider a monopoly, where the demand curve is given by P equals 25 minus Q, M R equals 25 minus 2 Q, T C equals

Consider a monopoly, where the demand curve is given by P equals 25 minus Q, M R equals 25 minus 2 Q, T C equals Q, and MC equals 1. Suppose the government wanted to regulate the monopoly so that it produced output and charge a price as close to the perfectly competitive outcome as possible, but in such as way so that the monopoly does not make a loss. In this scenario, the monopolist would produce a quantity and charge a price such that Q=24, P=1 Q=12, P=13 Q=12, P=1 Q=24, P=24

Q=24, P=1

Q=12, P=13

Q=12, P=1

Q=24, P=24

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