What is the socially optimal output and price?

s costs Show more Honolulu Waste Management (HWM) has a monopoly on the garbage pickup market in Honolulu. HWMs costs are shown below. (a) Given the costs of RWM and the demand curve given in the graph above explain the most likely reason that RWM has a monopoly. Econ 130 Sec. 1 Fall 2015 Homework 5 Michael J. Roberts University of Hawaii at Manoa (b) What are the profit maximizing levels of output and price? Calculate the profits consumers surplus and deadweight loss at the profit-maximizing price. (c) What is the socially optimal output and price? Calculate firm profits and consumers surplus at the socially optimal price. (d) The government decides to regulate RWM by imposing a price ceiling of $8. Calculate the firms profits consumers surplus and deadweight loss under the regulated price ceiling. Show less

QUICK QUOTE

Approximately 250 words