Answer:
Check the explanation
Explanation:
Now if demand curve is equal to average cost curve then from the table and graph we can see that it happens when quantity is 6 million and price is 150.
In an unregulated market, company will sell to maximize profit which as seen from the table happens when quantity is 4 million and price is 210.
Allocative efficiency means price(demand) = MC which from the table can be seen at price 60 and quantity 8 million output. but at this price we see that company suffers 560 million loss so it should get 560 mullion as subsidy to even work at zero profits.
Kindly check the attached image below to see the step by step explanation to the question above.