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The reason a profit-maximizing natural monopolist cannot set price equal to marginal cost is that it would:
Then be forced to produce more than it could sell.
Then be forced to produce more than the socially optimal level of output.
Earn excessive profits, which would attract new firms into the market.
Suffer losses since price would be less than average cost.
Which would increase investment demand?
A traffic light is set to switch from red to green according to a uniform distribution with a mean of 45 seconds. The difference between the smallest and largest number of seconds it takes the light to switch is 8 seconds. what is the median number o..
Write down a paragraph explaining how the Hernandez Corp. finds the least cost combination of inputs for producing the given rate of output.
Researchers have estimated the long run demand elasticity for almonds is -0.47, and the long run supply elasticity is 12.0. The short run demand elasticity for almonds is -0.30
assume that the required reserve ratio is 10. if the federal reserve buys a 10000 government bond from an individualin
This line is aimed at the low end of the market and isn't constructed on a wheel base. Writing instruments. This line includes mechanical pens and pencils which are sold to the middle-market segment between the low-end products such as Bic and h..
research identify and discuss some of the environmental issues faced by business and society as well as at least two
use your own words to explain the idea of equilibrium in the income-expenditure model. as part of your answer explain
a monopolist has two types of customers. there are 100 of type a who will each pay up tp 10 for a single unit of the
1. how much would you pay for a perpetual bond that pays an annual coupon of 80 per year and yields on competing
While the prospect of adding an additional $1,200 to World of Videos's bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the b..
Thomas so well, an economist at the hover institute at Stanford university, has written, "all economic systems, not only provide people with goods and services,
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