Demand curve intersects the marginal cost curve

Assignment Help Business Economics
Reference no: EM131092986

The discussion of price ceilings supposed that the medical industry faces increasing marginal costs of production. Suppose a for-profit, monopolistic hospital is experiencing economies of scale (i.e., downward-sloping average and marginal cost curves) in the relevant range. Show graphically.

Discuss in writing the problems associated with: A price ceiling set where the demand curve intersects the marginal cost curve. A price ceiling set where the demand curve intersects the average cost curve.

Think in terms of allocative efficiency and financial solvency.

Reference no: EM131092986

Questions Cloud

Make predatory pricing by incumbents rational : Which of the following conditions may make predatory pricing by incumbents rational?
Studying any of the three languages : How many students are not studying any of the three languages?
Find new expressions for the riskless interest rates : Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 2. Now suppose that there is full trade in goods and assets in every period. Find new expressions for the riskless interest rates (call these rift, for "free trade"). Do the interest rate..
Quantity demanded and quantity supplied : Look at Demand and supply; and quantity demanded and quantity supplied; they sound alike, but are different. What causes movement along the demand and supply curves and what causes the demand and supply curves to shift left or right; that is; what ca..
Demand curve intersects the marginal cost curve : The discussion of price ceilings supposed that the medical industry faces increasing marginal costs of production. Suppose a for-profit, monopolistic hospital is experiencing economies of scale (i.e., downward-sloping average and marginal cost curves..
Reserve bank controls the money supply and interest rates : The Federal Reserve Bank controls the money supply and interest rates in the United States. In your informed opinion, has it done a good or a bad job over the last decade? Why? What could it or should it have done differently? Why? Consider the ethic..
Did securitization play role in this story : In your own words, describe the series of events that led to the “Great Recession” over the 2007-2009 period.   Hint: In the vocabulary of Chapter 9, an asset price bubble in what sector of the economy started the the chain of events that ultimately ..
Market system in which prices are set by supply-demand : Should the government subsidize education or should college education be allocated in the market system in which prices are set by supply/demand? Please provide benefits and problems of each approach from the economic standpoint.
Explain polynomials mathematical term with example : Explain Polynomials mathematical term with example

Reviews

Write a Review

Business Economics Questions & Answers

  Find a competitive firms supply function

Suppose that demand for rollerblades is given by D(p) = A ? p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive. Find..

  Using your understanding of shifts in supply also demand

Using your understanding of shifts in supply also demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part.

  Prepare a flexiable budget performance report

Prepare a flexiable budget performance report, assuimng that the company worked 8,500 direct labor hours during the month.

  Multipoint description of the trade or business

We know that Keynes and Minsky both had a multipoint description of the trade, or business, cycle with Minsky being more detailed than Keynes. Using Keynes' elements of the trade cycle as major bullet points, as-sign Minsky's elements of the business..

  Illustrate what is the probability that a randomly selected

Illustrate what is the probability that a randomly selected hair dryer will be in working condition for more than 60 months.

  Constant marginal cost and constant average total cost

De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination. U..

  Contractor decides to deviate

If a contractor decides to deviate from this agreement, what would the optimal deviation be?b. Suppose that M = 10 and C = 1. For which values of "delta" is this a subgame perfect equilibrium of the infinitely repeated game?

  What bid price should you submit

No additional working capital is needed and no working capital will be returned. If your tax rate is 35% and you require a 14% return on your investment, what bid price should you submit?

  What will happen to the price of premium coffee

If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.

  Monopolist with a straight-line demand curve

A monopolist with a straight-line demand curve finds that it can sell one unit at $9 each or nine units at $1 each. Its marginal cost is constant at $4 per unit.

  Elucidate how industry consolidation has impacted

Elucidate how industry consolidation has impacted the company and make projections about the long-term prospects for the company.

  Illustrate what is the quantity demanded

If there is no tariff, explain how much does customer pay for a pound of coffee. Illustrate what is the quantity demanded.

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