Question: Given the Leontief production function, describe what effect the Rate-of-Return (RoR) regulation has on output, profit, consumer surplus, total surplus, and the capital-labour ratio. Does

Given the Leontief production function, describe what effect the Rate-of-Return (RoR) regulation has on output, profit, consumer surplus, total surplus, and the capital-labour ratio. Does the monopolist have an incentive to waste capital and/or labour? You can assume that there is no uncertainty.

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