Question: Two phone companies offer local calls in an area. The table shows the demand curve for calls and the . . marginal costs curves of each firm. These firms are regulated.

1. What is the price of a call and what is the number of calls per day if the regulation is the social interest?
2. what is the price of a call and what is the number of calls per day if the regulation is in the producer's interest?
3. What is the deadweight loss in part (b)?
4. What do you need to know to predict whether the regulation will be in the social interest or the producers interest?

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