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The following graph represents a natural monopoly. a. Why is this firm considered a natural monopoly? Because (Long Run) Average Cost is always downward-sloping. b. If the firm is unregulated, what price and output would maximize its profit? What would be its profit or loss? c. If a regulatory commission establishes a price with the goal of achieving allocative efficiency, what would be the price and output? What would be the firm's profit or loss? d. If a regulatory commission establishes a price with the goal of allowing the firm a "fair return," what would be the price and output? What would be the firm's profit or loss? e. Which one of the prices in parts b, c, and d maximizes consumer surplus? What problem, if any, occurs at this price?
Explicate how these projected deficits will affect the US Stock and bonds. Could you explicate briefly this question thank you.
If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. Illustrate what is the variance of the returns..
Illustrate what effect this could have on the price of cigarettes also the quantity of cigarettes sold
What is the total quantity supplied to the market? As this market makes the transition to its long-run equilibrium, will the price rise or fall?
Calculate the long run profit for a typical firm. These are the given equations: P= -1/4Q+20 P= 1/4Q
What order quantity would you advise and how much can they save using your recommendation instead of their one order per year strategy.
Now? suppose? that? the ?first ?firm? has? a ?capacity ?of ?2 ?and? the? second? firm? has ?a ?capacity ?of ?4.
Under illustrate what circumstances should the debtor nation status of the United States (US) be a concern.
Illustrate what is the most money you can make on this position. Elucidate how far can the stock price move in either direction before you lose money.
Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return..
To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a+b+c=MC. If the taxes are set so that each resident shares the cost evenly (a=b=c), explain how many paths will get built.
In which direction will the scale effect change the firm’s employment of labor? c. Can you say conclusively whether the firm will use more or less labor? More or less capital?
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