The government regulates monopolies because A. monopolies generate inefficiency by creating a misallocation of resources. B. monopolies price their output above the marginal cost of production. C. monopolies produce less than the socially desirable level of output. D. All of the above.

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)