Question: Suppose that in Problem 3, the government wants to regulate Kalamazoo Competition-Free Concrete. What price will maximize aggregate surplus in this market? If the government

Suppose that in Problem 3, the government wants to regulate Kalamazoo Competition-Free Concrete. What price will maximize aggregate surplus in this market? If the government must ensure that KCC does not lose money, what is the second-best price that maximizes aggregate surplus, subject to this constraint?

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