There are 1010 households in Lake Wobegon, Minnesota, each with a demand for electricity of Upper Q equals 60 minus Upper PQ=60−P. Lake Wobegon Electric's (LWE) cost of producing electricity is TC equals 575 plus 2 Upper QTC=575+2Q. a. If the regulators of LWE want to make sure that there is no deadweight loss in this market, what price will they force LWE to charge? What will output be in that case? Calculate consumer surplus and LWE's profit with that price. (Round all responses to two decimal places.)

The answer is provided below

Explanation:

If the regulators of LWE want to make sure that there is no deadweight loss in this market, they would impose a price of $1 at the point the marginal cost cross the demand curve.

If a price of $1 is imposed, the quantity (Q) = 60 - P = 60 -1 = 59 per customer. The profit would be $1 * 59 * 1010 - (575 + 2(59*1010)) = -$60165. There wound need to subsidize about $60165 so as to operate at this price.

consumer surplus = 0.5 * 59 * 59 = 1740.5 per customer to give a total of 1757905 (1740.5 * 1010)

you don't if you paid you paid. it's like if i bought a computer and used it then i say idon't want it anymore so im gonna return it. you can't. unlkess you have your reciept

this conflict is person vs. society

if you need further explanations, comment below!

hope this ! < 3