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(a) The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discrimination? If the company incurs diseconomies of scale due to capacity limits, will it be encouraged to do so?
(b) Most cell phone rate plans are provided as a two-part tariff: a monthly access fee which includes some free minutes and a per-minute charge for additional minutes. In addition, major providers usually offer several different types of rate plans and even options within each. Why don't they simply offer a single two-part tariff to all consumers?
Use the demand and supply analysis to explain how higher price of corn impact the market for Ethanol (a motor fuel manufactured from corn and can be used to power the engines of many Automobiles).
Recently, the Fed is paying banks interests for their required reserves and excess reserves. This is now the fourth policy tool for the Fed to control money supply (in addition to the three policy tools summarized on p. 423.). what if the Fed want..
Explain the process or mechanism underlying how a market-based economic system allocates scares resources. Identify how this process might differ from a centrally planned or command economy.
What are some of the cost implications of industrialization of family farms What are implications when the government gets involved What are implications for future firm size in the market as a result of the recent drought
Which of the following increases the political power of special interest groups and makes counterproductive government action more likelyA car sells at different prices at different dealerships in a local market. If a consumer has imperfect informa..
The demand for new motor homes in the US is highly cyclical and sensitive to diesel fuel values and interest rates. Given these characteristics, explain the effect of the following on quantity demanded
Describe why the following is an example of monopolistic competition: There are a number of fast-food restaurants in town, and they compete fiercely.
Becky really likes Macaroni Grill but can only afford to eat out 4 times a year.So calculate for restaurants the income elasticity of demand?
a. How many different possible dial combinations are there for this lock b. What is the probability that if you randomly select a posi- tion on each dial, you will be able to open the bank vault c. Explain why "dial combinations" are not mathematical..
In economics, what factors may help determine the value of information Can you provide factors in the case when information is treated as a consumption good Can you provide factors in the case when information is treated as an input in the decisio..
Environmental Protection Agency regulations tend to go by several stages of review and approval before they are implemented.
How big will that budget have to be before he would spend a $1 buying a first cup of coffee?
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