Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

ANGELNAV

  • one year ago

what is the ceiling price(maximum price) which the govt can set for a monopolist so that deadweight loss is minimised?

  • This Question is Open
  1. saikat123
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    hi i have just read the topic and according to me there is no specific value for which the govt can set ceiling price so as to minimize the deadweight losses since setting the price at which demand (or price) curve meets the marginal cost curve but thenif the fixed cost is too high and marginal cost more or less constant and less compared to fixed costs then the average cost curve is always above the marginal cost so that there is a net loss to the producer which can be compensated by giving subsidy but then that would again be paid by tax payer's money which again creates a deadweight loss...so every case is different and every solution should be unique...plz tell if i am wrong

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.