Difference between monopoly price-average cost pricing

Assignment Help Business Economics
Reference no: EM13802484

With the aid of a diagram explain the difference between monopoly price, average cost pricing, and marginal cost pricing of a natural monopoly. Which is the most efficient and why

Reference no: EM13802484

Questions Cloud

Is the firm charging the optimal price for the product : Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, is it estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product?
What is a change in the interest rates on excess reserves : What is a change in the interest rates on excess reserves? And there should be an actual equation with the numbers plugged in.
What is rent seeking behavior : What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?
Which characteristics do not fit this market structure well : Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens.  Now that you have looked at these characteristi..
Difference between monopoly price-average cost pricing : With the aid of a diagram explain the difference between monopoly price, average cost pricing, and marginal cost pricing of a natural monopoly. Which is the most efficient and why
Explain using the labor-leisure model and words : Explain using the labor/leisure model and words, how a progressive income tax will affect the budget constraint of the worker and their behavior or how a tax preference (tax deduction) will affect consumption choices.
The tax is a constant marginal tax on earned income : Use a labor/leisure model (with leisure hours on the horizontal axis and income on the vertical axis) and words to explain in detail why an income tax creates a welfare cost (or excess burden). Assume that the tax is a constant marginal tax on earned..
Salvage value was assumed in calculating the capital cost : K.T. Labs bought a Gene gun for $25,000. The accounting department has estimated that the machine would have an annualized capital cost of $3,880 over its 10-year service life. What salvage value was assumed in calculating the capital cost? The firm'..
What is marginal excess burden : Explain in detail the concept of excess burden and explain the factors significant in the calculation of the excess burden. What is marginal excess burden and why is it important concept for policy evaluation?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Health insurance companies are oligopolies

Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.

  Marginal analysis also optimizing behavior in general

Elucidate why your answer to part (a) is an example of marginal analysis also optimizing behavior in general.

  Qauto company comprises small plant that produces

q.auto company comprises small plant that produces speedometers exclusively. its yearly fixed expenses are 30000 and

  What is the profit-maximizing price and output level

What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC, D and MR curves and illustrate the equilibrium point.

  At what level of l is apl at its maximum level

Write equations for APL and MPL and graph them on the same set of axes. b. At what level of L is MPL at its maximum level? At what level of L is APL at its maximum level?

  What is the market price of fish in fire island

The daily demand and supply of fish in Fire Island, NY is described by the following equations: What is the market price of fish in Fire Island? How much is consumer and producer surplus?

  What is the pw of the flow-what is her future worth

A set of cash flows begins at $200,000 at the end of year 1. It deceases by 10% at the end of year 2 and so on, until n = 10 years. If the MARR = 8%, what is the PW of the flow? Lucky Linda, a very good Avon salesperson, is averaging $100,000 per yea..

  Q1 illustrate what might you be able to infer about the

q1. illustrate what might you be able to infer about the elasticity of demand from the following statement in the

  Compare and contrast the political and economic differences

compare and contrast the political and economic differences of at least two countries (for example India and the United States); and 4) discuss what managers can do to successful work with the opportunities and challenges present in this global ..

  Professional sports players are generally paid

Professional sports players are generally paid much more than farmers, factory workers, engineers also teachers.

  Determine the maximum amount you are willing to spend

Explain how you would determine the maximum amount you are willing to spend to fight the case, assuming that you will win if you fight

  Different types of procedures in litigation

What is the purpose of having different types of procedures (e.g. pleadings, motions, and discovery) in litigation? Are some procedures more important than others? Do all these procedures just create an atmosphere of gamesmanship in litigation? Do th..

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