ajaz_eco_204_2012_2013_chapter_16_Market_Power

Eco 204 s ajaz hussain do not distribute on the other

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Unformatted text preview: roaches that and (while stays the same). Therefore, the specific price point chosen depends on whether the regulator places a higher weight on consumers or producers. To underscore this point we can write social welfare as: ( ) Here is the weight that the regulator places on consumer welfare. Suppose that this case the regulated price and output are the same as the monopoly price and output: so that : in Regulated Monopolist with Unregulated Monopolist Demand Demand ⏟ ⏟ 64 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. On the other hand, suppose that so that and unregulated outputs are the same: : in this case the regulated price equals while the regulated Regulated Monopolist with Unregulated Monopolist Demand Demand ⏟ ⏟ Notice that: In most textbooks, you’ll see this case when the regulator favors consumers over producers so that: 65 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-...
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This document was uploaded on 01/19/2014.

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