Explain the law to charge average total cost

Assignment Help Macroeconomics
Reference no: EM13222862

suppose that a natural monopolist was required by law to charge average total cost. on a diagram label the price charged and the deadweight loss to society relative to marginal cost pricing. briefly explain diagram and comment on your results. Hint: ensure you consider the characteristics of natural monopolies.

Reference no: EM13222862

Questions Cloud

Whats the share of each citizen in order to pay the debt : When we began our engineering economic class on January 11,2011,the us national debt was $14,021,971,958,329.21.Now(March 3,2011),we have the debt is $14,181,000,542,446.10. (a)if it is continually growing this rate,whats our debt at the end of thi..
Compute the mass of a parcel of dry air : Calculate the mass of a 1m3 parcel of dry air at STP. Calculate its mass at the same pressure but at 10 ?C and 20 ?C.
Identify the implications of exchange-rate changes : Discuss the various approaches available to help you accurately forecast exchange rates. Identify the implications of exchange-rate changes on the company's marketing, production, and financial decisions
Explain converted to solid mercury at its melting point : Calculate the heat energy released when 19.6 g of liquid mercury at 25.00 °C is converted to solid mercury at its melting point.
Explain the law to charge average total cost : suppose that a natural monopolist was required by law to charge average total cost. on a diagram label the price charged and the deadweight loss to society relative to marginal cost pricing. Hint: ensure you consider the characteristics of natural ..
Discuss the market and manufacturing requirements : Discuss the market and manufacturing requirements that make apporpriate to use MRP and Just-In-Time.
Explain volume measurements on a sample of pure cadmium : Weight and volume measurements on a sample of pure cadmium showed its density to be 521 lb/ft3 is this a 3.5% error?
Identify one example of a resource with a very low average : Identify one example of a resource with a very low average utilization rate, and a second example with a very high average utilization rate. Consider both service and manufacturing organizations.
Compute the mass of kcn : Calculate the mass (in mg) of KCN needed to make 500. mL of aqueous KCN solution with a pH of 10.00. The Ka of HCN = 5.0 x 10-10.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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