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In the wake of the energy crisis in California, many electricity generating facilities across the nation are reassessing their projections of future demand and capacity for electricity in their respective markets. As a manager at Florida Power & Light Company, you are in charge of determining the optimal size of two electricity generating facilities. The figure below illustrates the short-run average total cost curves associated with different facility sizes. Demand projections indicate that 6 million kilowatts must be produced at your South Florida facility, and 2 million kilowatts must be produced at your facility in the Panhandle. Determine the optimal facility size (S, M, or L) for these two regions, and indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
Illustrate are some of the clever strategies that landlords might use to create a black market.
Begins with the economy at potential GDP, a war in the Middle East pushes up energy prices temporarily. The Fed expands the money supply to accommodate the inflation.
Economists are in almost universal agreement that Free Trade is good for all countries. Explain why are they in such universal agreement.
Suppose the consumtion function is ( C = $500 billion + 0.9Y) and the government wants to stimulate the economy. By how much will the aggregate demand at current prices shift intially (before multiplier effects) with (a) A 50 billion dollar increa..
What are the implications for the design of monetary policy frameworks and what domestic factors does the Report identify as likely to affect the UK economy?
markets often can and do fail to deliver efficiency, equity or both. The most common claims of such apologists about the failure of markets to deliver efficiency or equity are (1) monopoly power, (2) externalities, (3) information asymmetry, and (..
The number of repairs manufactured by a computer repair shop depends on the number of employees as given follows:
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
Given that this is a training manual to sensitize employees, how will this affect any practices at the company.
Equate the following cash flows to equal cash flows in years 5,6,7,8 and 9. Let i = 8% per year. Use a uniform gradient factor in your solution.You have the following end of year cash flows: Y0 = $400 Y1 = $300 Y2 = $200 Y3 = $100
The Hair Stylist, limited, has a monopoly in College Park market because of restrictive licensing requirements, and not because of superior operating efficiency.
Elucidate what does the US government hope to achieve through the use of its antitrust policy.
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