Recalling the information from the "Botox Patent Monopoly" application, inverse demand was p=775-375Q, marginal revenue was MR = 775-750Q, marginal cost was MC = 20, a constant, and quantity is in millions of units. What would happen to the equilibrium price and quantity if the government had set a price ceiling of $225 per vial of Botox? The equilibrium price would be $☐ (round your answer to two decimal places) The equilibrium quantity would be million units. (round your answer to two decimal places) What welfare effects would the price ceiling have? The deadweight loss (DWL) is $ million. (round your answer to two decimal places)

Recalling the information from the "Botox Patent Monopoly" application, inverse demand was p=775-375Q, marginal revenue was MR = 775-750Q, marginal cost was MC = 20, a constant, and quantity is in millions of units. What would happen to the equilibrium price and quantity if the government had set a price ceiling of $225 per vial of Botox? The equilibrium price would be $☐ (round your answer to two decimal places) The equilibrium quantity would be million units. (round your answer to two decimal places) What welfare effects would the price ceiling have? The deadweight loss (DWL) is $ million. (round your answer to two decimal places)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section15.3: The Welfare Cost Of Monopolies

Problem 3QQ

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