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Unformatted text preview: M ), the quantity Amanda will produce (Q M ), the efficient quantity (Q Eff ), CS when the price is P M , and the DWL from producing Q M . Question 4 (11 points) Consider the production of mail delivery. Suppose mail delivery is a natural monopoly. In a well labeled diagram below, show the price of mail delivery, the profits of the firm, the quantity of mail delivered, and any DWL if the firm is regulated with ATC pricing. Also include the efficient quantity....
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This note was uploaded on 06/08/2008 for the course ECON 304K taught by Professor Ledyard during the Spring '08 term at University of Texas at Austin.
- Spring '08