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Suppose an industry experiences decreasing average costs of production over the relevant range of market demand. Discuss the merits of a regulation requiring the natural monopolist to set a price where demand equals marginal cost and to service all willing customers. What about where demand equals average cost? Are any practical difficulties likely to be encountered with either regulatory program?
What effect do the various types of factor growth have on the growing nation's production frontier? What is meant by balanced growth?
Suppose there is a river on which are located several micro breweries, each of which discharges pollutants into the water.
Tom can produce 40 balls per hour or 4 bats per hour. Tessa can produce 80 balls per hour or 4 bats per hour. a. calculate Tom's opportunity cost of producing a ball. b. calculate Tessa's opportunity cost of producing a ball.
Now suppose that an export-promotion drive succeeds in raising net exports to $100. Answer (a) and (b) under these new circumstances.
Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 5%. Households deposit $20,000 in currency into the bank. How much excess reserves does the bank now have.
How does the moisture state of a concrete test specimen affect the elastic modulus and strength values? Explain why both properties are not affected in the same manner.
Test the intercept estimate for significance at the 95 percent confidence level. If Proposition 103 has no impact on auto insurance premiums in any given county, what percent of voters do you expect will vote for the proposition
Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches.
According to the ACI Building Code 318, selection of mix proportions should be based on the average strength, not the specified strength. Is this justified? Given a specified strength value, what procedures are used to determine the average streng..
Suppose demand for widgets is given by the equation P=20-0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit. How much total tax revenue is raised by the tax
why does it usually first experience increasing returns to scale?
(a) select an appropriate economic criterionand estimate the production rate based upon it. (b) how could you maximize output with minimum input . explain
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