Nationalization of industries so pricing is at marginal cost

Reference no: EM13696611

Why are government imposed "average cost pricing" and "nationalization of industries so pricing is at marginal cost" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?

Reference no: EM13696611

Questions Cloud

Is the refund policy a signal of product quality : A publisher of financial management software offers full refunds to any dissatisfied purchaser. Is the refund policy a signal of product quality? Explain why, and how signaling works. Some companies continue in business even though they are losing mo..

Monopolist to continue earning economic profits : Which of the following conditions would most likely permit a monopolist to continue earning economic profits even in the long run?

What is the irr of the investment : Make a cash flow diagram or table showing yearly dollar values. What is the IRR of the investment (show all calculations) If companies’ discount rate is 12% would this be a good investment?

What is your conclusion : A sample of 59 account balances of a credit card company showed a sample mean balance of $1,150 and a sample standard deviation of $200. At a 2% level of significance, test to determine if the population mean balance is significantly different from $..

Nationalization of industries so pricing is at marginal cost : Why are government imposed "average cost pricing" and "nationalization of industries so pricing is at marginal cost" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?

What price will prevail in the long run : In the short run, suppose a competitive firm’s ATC = 7200/q + 20 + 2q. If cost functions stay the same in the long run and the industry remains perfectly competitive, what price will prevail in the long run?

Monopolist faces demand curve of and total cost curve : Assume a monopolist faces the demand curve of and a total cost curve-What do you notice about fixed costs in this case? Determine the monopolist’s profit maximizing level of output and price, as well as the amount of profit earned.

Calculate the marginal propensity to consume : Calculate the marginal propensity to consume. Calculate saving at each level of disposable income and calculate the marginal propensity to save.

Explain what is meant by in-kind transfer programs : Explain what is meant by "in-kind transfer" programs. Briefly outline the pros and cons associated with an in-kind transfer program

User Account

All Pages