Average cost pricing

Assignment Help Microeconomics
Reference no: EM13686063

Why are government imposed "nationalization of industries so pricing is at marginal cost" and "average cost pricing" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?

Reference no: EM13686063

Questions Cloud

The role of individual mandate in the a§ordable care act : Discuss how the exercise above tells you about the role of individual mandate in the A§ordable Care Act?
Assess both the long-term and short-term costs : Conduct a cost-benefit analysis of obtaining a graduate degree. Assess both the long-term and short-term costs and benefits to decide why some people pursue extra education while others do not.
Provide a cost-benefit analysis-production schedules : Provide a cost-benefit analysis for a company that has to decide whether to hire more staff or hire temporary workers to meet production schedule provide a cost-benefit analysis for a company that has to decide whether to hire more staff or hire temp..
Discuss how government regulation is either constraining : Discuss how government regulation is either constraining or enabling viable business operations in any company. Apply practical examples to illustrate.
Average cost pricing : Why are government imposed "nationalization of industries so pricing is at marginal cost" and "average cost pricing" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?
Fixed number of industrial pollution permits are marketable : If a fixed number of industrial pollution permits are marketable, then we should just sell the right to smoke to the highest bidders rather than ban smoking outright in many cities, towns, business outlets, bars and restaurants. It would reduce the e..
Presume a certain country has a private saving : Presume a certain country has a private saving of 6 % of GDP, capital inflow of 1 % GDP and a balanced budget. What is its level of investment if the budget deficit is 1.5 % of GDP?
Model based on government regulation a cartel : Explain a model based on government regulation (price ceiling or floor), a cartel, or a monopoly. Discuss How price is determined; How sustainable you expect the pricing to be over time;
High number of firms producing surplus output : Presume a competitive industry has excess supply represented by a high number of firms producing surplus output; as the industry reaches long run equilibrium,

Reviews

Write a Review

Microeconomics Questions & Answers

  Define the production function specified

Using the equation in (c) show that if the capital/labor ratio K/L is a constant k, the elasticity of output with respect to labor is b + c. (e) Why are relationships expressed like those in (c) important for doing econometrics? (f) Show that the ..

  Output level will marginal costs reach a minimum

Using regression analysis, find an equation that best fits the data to represent the TVC function and at what sales/output level will marginal costs (MC) reach a minimum?

  The drug are presented in accompanying table should das

approximately 14 million americans are addicted to drugs and alcohol. the federal government estimates that these

  The kinked demand curve describes price rigidity

The kinked demand curve describes price rigidity. Explain how the model works. What are its limitations? Why does price rigidity occur in oligopolistic markets?

  What is the average fixed cost

What is the average fixed cost for the third unit of output and what is the average variable cost for the 5th unit of output?

  What is firms cost of capital after taxes with a tax rate

A firm's stockholders expect a 15 percent rate of return, and there is a $22 M in common stock and retained earnings. The firm has $9M in loans at an average rate of 7 percent. The firm has raised $14M by selling bonds at an average rate of 5 percent..

  What price will the profit-maximizing monopolist charge

What is the monopolist's profit-maximizing level of output and what price will the profit-maximizing monopolist charge?

  How to change default electives

1. What types of things do you need to consider if you want to change your default electives? What resources will you use to help you to make your decisions? 2. Are you satisfied with your default electives or do you think you should choose alterna..

  What are some expected domestic economic consequences

What are some expected domestic economic consequences of thecurrency crisis for the countries involved Focus on: import prices of goods and services into the Asiancountry. export prices of goods and services from the Asiancountry.

  Reduce the total amount of emissions

What two policies could you use to reduce the total amount of emissions and why do you think they each would work?

  Determine the equilibrium market price

Determine the equilibrium market price and the equilibrium market output level and determine the individual's firm's level of profit. Profit = TR - TC

  Microeconomic analysis what do you mean by social welfare

what do you mean by social welfare function? if you assume that such a function exists what properties of social optima

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd