Explain what problems might such a subsidy entail

Reference no: EM13214485

In view of the problems involved in regulating natural monopolies, compare socially optimal (marginal cost) pricing and fair return pricing by referring again. Assuming that a government subsidy might be used to cover any loss resulting from marginal?cost pricing, which pricing policy would you favor? Why? What problems might such a subsidy entail?

Reference no: EM13214485

Questions Cloud

Compute the mass of magnesium in mg needed to generate : Calculate the mass of magnesium, in mg, needed to generate 80.0 mL of H2 gas. Assume a temperature of 22.0 °C

Does the scripture support a big government or laissez faire : "Because of market failure, we need a big government intervention to help appropriate the scarce resources to make sure that everyone is taken care of." Do you agree Take a position and provide your rationale.

What are the drawbacks and how could they be corrected : Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms If there are such monopolies, what are the drawbacks and how could they be corrected

State what are the spectator ions in the solution : What are the spectator ions in the solution after completely precipitating an insoluble carbonate compound when mixing BaCl2(aq)

Explain what problems might such a subsidy entail : In view of the problems involved in regulating natural monopolies, compare socially optimal (marginal cost) pricing and fair?return pricing by referring again. Assuming that a government subsidy might be used to cover any loss resulting from margi..

Compute the masses of silver chloride : Calculate the masses of silver chloride and dihydrogen monosulfide formed when 85.6 g of silver sulfide reacts with excess hydrochloric acid, HCl?

Compute the initial effusion rate : Calculate the initial effusion rate. If this rate continued how much time would pass until the pressure dropped to 0.90 bar? (actually the rate changes with pressure- indicated why using the equations). assume values for nitrogen

Describe the checkable deposits in excess : The balance sheet of a bank follows. Suppose that the reserve requirement is 3 percent on the first 30 million of checkable deposits and 10 percent on checkable deposits in excess of 30 million. Assets: Rerserves $15.9 Loans $150.0 Securities $34...

What is the firms earnings per share : The firm's tax rate is 40% on ordinary income.If the EBIT is expected to be $200,000, what is the firm's earnings per share?

User Account

All Pages