Question: please answer Consider a power company which is the only licensed electricity supplier in the city. The Demand for electricity is given by P =

please answer Consider a power company which is the only licensed

please answer

Consider a power company which is the only licensed electricity supplier in the city. The Demand for electricity is given by P = 10 0.2*Q and the Marginal Cost of the company is given by MC = 4 + 0.2*Q. Identify the optimal output, the market Price, the Consumer surplus, the Producer surplus and the Dead Weight Loss in the electricity market. Support your answers with a suitable diagram

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