How does the mispricing affect customer behavior

Assignment Help Business Economics
Reference no: EM131159524

Can you give me at least two examples of how average cost pricing has distorted regulated markets in electricity and natural gas. How does the mispricing affect customer behavior?

Reference no: EM131159524

Questions Cloud

Analyzing macroeconomic events with the is curve : Analyzing macroeconomic events with the IS curve (I) : Consider the following changes in the macroeconomiy. Show how to think about them using the IS curve, and explain how and why GDP is affected in the short run.
Why does marginal cost initially decrease : Why does Marginal Cost initially decrease? The Average Fixed Cost continues to decline as the quantity increases. Why? Why does the Average Variable initially decrease? Where does the Marginal cost curve intersect the ATC and AVC curves? Why?
Market structures-perfect competition-monopolistic competion : Market Structures: Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly Describe the following each one: characteristics of the market. number of substitutes for the good. barriers to entry- legal, control of resource, financial.
The productivity slowdown and the great inflation : The productivity slowdown and the Great Inflation: Using the IS-MP diagram and the Phillips curve, explain how the productivity slowdown of the 1970s may have contributed the Great Inflation. With this belief, what monetary policy action would policy..
How does the mispricing affect customer behavior : Can you give me at least two examples of how average cost pricing has distorted regulated markets in electricity and natural gas. How does the mispricing affect customer behavior?
No inflation stickiness : No inflation stickiness: Suppose the classical dichotomy holds in the short run as well as in the long run. That is, suppose inflation is not sticky but rather adjusts immediately to changes in the money supply.
Repeated game where the firms play the grim strategy : Three firms produce an identical product. The market demand is as follows: q(p) = Qo if p ≤ 2, q(p) = 0 if p > 2. Production costs are zero for all firms. Each firm has a capacity constraint of 5 units. In each period firms set their prices for that ..
Grim strategy-cournot-nash equilibrium quantity : Consider an infinitely repeated Cournot competition with N firms. The market demand is Q(p) = 14 – p. All firms have the same cost function TC(q) = 2q. The common discount factor of firms is δ
What price should you charge for midsized automobile : You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $1.7 million. What price should you charge for a midsized automo..

Reviews

Write a Review

Business Economics Questions & Answers

  Statement are true for perfectly competitive firm

Which of the following statement(s) are true for a perfectly competitive firm that is seeking to maximize profits? The best production choice is at a quantity where price is equal to marginal cost. Price is equal to marginal revenue.

  Artificial intelligence corporation has two divisions

The "Artificial Intelligence (AI) Corporation" has two divisions: Manufacturing and Sales. When a new worker is hired both she and her supervisor are equally ignorant about her ability. There is no skill involved in making and marketing AI robots; ho..

  Quantity demanded for windows system

Suppose that the quantity demanded for Windows 7 system is given by Q = 320 − 2P, where P is the price of the Windows 7. Let us assume that the total cost of producing Q units of Windows 7 is given by C(Q) = 500 + 0.5Q2. What is the price that Micros..

  Initial fiscal stimulus and cumulative fiscal stimulus

Suppose Congress and the president decide that the best method to stimulate the economy is to cut taxes. The total amount of tax cuts approved is $300 billion and the current MPC is .80. Determine the initial fiscal stimulus and the cumulative fiscal..

  Polices to reduce income inequality and poverty

Write two paragraphs on the polices to reduce income inequality and poverty. Explain the content of these policies and make a comparative assessment.

  All industries to have a similar relationship to the economy

Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy. Please discuss your findings and how the economy will affect them diffe..

  The income elasticity of demand measures

The income elasticity of demand measures, for a given price, the ________________ in quantity demanded divided by the ____________________ income from which it resulted. If a decrease in the price of one good causes a decrease in demand for another g..

  Successful collective bargaining

Successful collective bargaining (on the part of a labor union) will have what effect on the market for labor? It will

  Preferences stay constant across time

When the Smith family lived in Japan they consumed 4 lbs of rice per week and 2 lbs of potatoes per week. When the Smith family lived in Germany their consumption drastically changed to 4 lbs of potatoes per week and 2 lbs of rice per week. Although ..

  Demand and supply conditions

Consider a market characterized by the following demand and supply conditions: Px=100-5Qx and Px=20+3Qx. The equilibrium price and quantity are, respectively:

  Proprietary income from running the local power utility

The city of Joslyn has three sources of revenue, borrowing, proprietary income from running the local power utility, and taxes. If it recieved $10 million from running the electric power utility and borrowed $40 million, how much did it collect in ta..

  Why is the production possibility frontier bowed outwards

Why is the production possibility frontier bowed outwards?

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