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Q "The public service company of the southwest is regulated by an elected state utility commission. The firm has total assets of $500,000. The demand function for its services has been estimated as:
P= $250-$0.15Q
The firm faces the following total cost function:
TC= $25,000+$10Q
(The total cost function does not comprise the firm's cost of capital).

In an unregulated environment, Illustrate what price would this firm charge, Illustrate what output would be produced, Illustrate what would total profits be also Illustrate what rate of return would the firm earn in its asset base?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9162336

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