Suppose a monopolistic local electric firm faces a demand curve given by P = 1 2 0 - 4 . Suppose the total cost for the monopolist in the long run is given by LTC = 4 0 0 + 4Q , and MC is fixed at 4 $ per unit. MR is given by P = 1 2 0 - 8Q . The government decides to regulate the monopolist by forcing the firm to charge a price equal to its marginal cost, just like firms would do in perfect competition. What will be the profits of the monopolist after the regulation?
a.$200
b. $250
c.$400
d.-$200
e. -$400