Define production limits used in practice to raise prices, Financial Management

Assignment Help:

How are production limits used in practice to raise the prices of the following goods or services:

(a) taxi rides,

(b) drinks in a restaurant or bar,

(c) wheat or corn?

Municipal authorities generally regulate the number of taxis by the issuance of licenses. While the number of taxis is less as compared to it would be without regulation, those taxis in the market may charge a higher-as compared to the competitive price.

State authorities generally regulate the number of liquor licenses.  Through requiring that any bar or restaurant which serves alcohol have a liquor license and then limiting the number of licenses available, the State limits entry through new bars and restaurants.This limitation permits those establishments which have a license to charge a higher price for alcoholic beverages.

Federal authorities generally regulate the number of acres of wheat or corn in production by making acreage limitation programs which provide farmers financial incentives to leave some of their acreage idle. This decreases supply, driving up the price of wheat or corn.


Related Discussions:- Define production limits used in practice to raise prices

Current assets management, how is operating cycle applicable to poultrybusi...

how is operating cycle applicable to poultrybusiness in Uganda (broilers)

Calculate the net present value-investment proposal, As you checked the Ans...

As you checked the Answer Key to Question 6 in the Mastery Check from this lesson you may have noted that each year's net cash flows are calculated by adding depreciation back to n

Financial crisis , a)  Tonddu plc is expected to report record earnings of ...

a)  Tonddu plc is expected to report record earnings of £120m next year.  It has grown rapidly over the last few years, the growth has been achieved by maintaining a high level of

Case study - credit-linked notes, Case Study - Credit-Linked Notes Cred...

Case Study - Credit-Linked Notes Credit linked notes are assets issued by financial institutions which have exposure to the credit risk of a reference Issuer . These notes pay

Deefine market price of a bond be influenced, If all other things held cons...

If all other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually in place of annually? Several bonds iss

International markets, Explain the random walk model for exchange rate fore...

Explain the random walk model for exchange rate forecasting. Can it be consistent with technical analysis?

Question, What can a financial institution often do for a deficit economic ...

What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?

Trial balances and bank reconciliation, Trial Balances: If the trial ba...

Trial Balances: If the trial balance does not result in a "0", the various records will need to be reviewed to pinpoint the spot where the unbalance occurred and any necessary

What are government intervention in chromex plc, Government intervention ...

Government intervention The government might look for intervene in the take-over bid because of fears that the market share of the combined group would constitute a monopoly wh

Accounting for financial instruments, The IASB is in the procedure of under...

The IASB is in the procedure of undertaking a comprehensive review of accounting for financial instruments, and has issued a latest financial instruments standard referred to as IF

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd