Reference no: EM13184120
The inverse demand function for natural gas is P(q) = 11 - Q. The market has a single natural monopoly producer with a total cost function of
C(Q) = 5Q - 0.005Q2.
The public utilities commission is thinking about regulating the monopolist. Consider the following schemes:
(a) Is this market a case for natural monopoly? Why?
(b)If the monopolist is left unregulated, what are the market price and quantity, the monopolists profit, consumer surplus, producer surplus, total surplus, and dead weight loss?
(c) If the monopolist is forced to produce where P = MC, what are the equilibrium price and quantity, the monopolists profit, consumer surplus, producer surplus, total surplus, and dead weight loss?
|
What price should the company charge for a pair of shoes
: Suppose that the marginal cost faced by a shoe company is $10 for a pair of shoes. If the demand elasticity for the company's shoes is also constant, and is equal to 5, what price should the company charge for a pair of shoes
|
|
Explain what happens to the temperature
: Describe what happens to the temperature, the volume, and the phase composition ( number of moles of liquid or vapor present) following the removal of 750 J of heat from 1 mol of pure water initially in each of the following states.
|
|
Competition and competitive technologie
: There are many questions that can be asked and answered to determine if a product still has a useful life. However, there is another variable which is less predictable and that is competition.
|
|
Explain why might electricity restructuring be a good idea
: You have been put in charge of electricity restructuring on the Isle of Mann. As part of the restructuring plan, it has been suggested to you that all wholesale electricity should be sold on the spot market at a price that is set every single min..
|
|
What are the equilibrium price and quantity
: If the monopolist is left unregulated, what are the market price and quantity, the monopolists profit, consumer surplus, producer surplus, total surplus, and dead weight loss. If the monopolist is forced to produce where P = MC, what are the eq..
|
|
Explain bovine serum albumin is a biochemically
: Bovine serum albumin (BSA) is a biochemically useful protein. A 0.225 gram sample of bovine serum albumin is dissolved in water to make 0.117 L of solution,
|
|
What is the average annual rate of growth of real gdp
: This is for a Macro class I am taking a test prep and I need like a step by step guide as to how i can do this using excel (the data must be found online) I apreciate as much help as possible! Question 1- Using a spreadsheet program, download the..
|
|
Explain specific metric unit
: When working NMR questions, solutions maunuals say that the peaks are 1.0 spaces long or 5.5 spaces long.
|
|
Calculate the intercept in each of the four quarters
: Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2006-2013 (the time variable goes from 1 to 32). The variables D1, D2 and D3 are , respecti..
|