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Instead of pursuing profit maximization through marginal cost pricing, the reg- ulated natural monopolists are required to follow the average cost pricing. In the average cost pricing, a natural monopolist firm sets its price at the level where the demand curve intersects the average cost ATC curve. This policy, compared to marginal cost pricing, leads to production of a larger volume of output at a relatively lower price.
What is the level of output and price if a natural monopolist with the cost function TC = 0.3Q3- 8Q2+ 120Q and market demand function
P = 100 - Q follows the average cost pricing? (From 2 possible solutions choose the larger one.) Compare this solution to the profit maximizing solution.
question 1.complete the table below for a feed price of 380 per tonne and a weaner price of 1.10 per kilogram. indicate
Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..
Given the below supply and demand equations for computers, The company decides to increase its marketing expenses to boost its sales and the new supply equation is P = 90 + 3Q and the new demand curve is P = 280 – 2Q. Discover the new equilibrium pri..
based on a survey of 1000 adults by greenfield online and resported in a may 2009 usa today snapshot adults 24 years of
Fiscal and monetary policy and the negative impact policy can have on the equilibrium of prices. Then, identify ways that a free market society can avoid the negative impact and maintain both production and price.
suppose that an oligopolistically competitive restaurant is currently serving 230 meals per day the output where mrmc.
What do the behavior genetics research on family influences and the evolutionary explanation of sex differences imply about the amount of influence parental behavior has on how masculine or feminine their sons and daughters become?
What is the Central Limit Theorem? How is it Used? Why is it Important?What is the Standard Error and How Can You Reduce It?
discuss the basic concepts of simple systems.identify 3 examples of simple systems. identify 3 examples of simple
During the 4th-quarter of 1993, real GDP in US increase at an yearly rate of over 7 %. During 1994, the economy continued to expand with modest inflation
The following two equations represent the demand and supply schedules of motorbikes for Country A. Suppose country A is large enough to affect the world price of motorbike and therefore it faces an upward-sloping supply curve from the rest of world (..
A company has a EBIT to be $100,000 every year forever. The company can borrow at 5%, has no debt and cost of equity of 15%. If the tax rate is 25 %, find out the value of the firm?
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