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The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discrimination? If the company incurs diseconomies of scale due to capacity limits, will it be encouraged to do so?
(b) Most cell phone rate plans are provided as a two-part tariff: a monthly access fee which includes some free minutes and a per-minute charge for additional minutes. In addition, major providers usually offer several different types of rate plans and even options within each. Why don't they simply offer a single two-part tariff to all consumers?
Determine what are some of the sources companies can turn to for venture capital funding?
Assume that I am selling cans of beer to people on a beach. Since I am concerned about my income, I decide to sell beer in the following way.
Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital. a. Does the production function exhibit increasing, decreasing or constant returns to scale.
Illustrate what is the present rate of unemployment and the current rate of inflation
What is the highest profit or lowest loss availability to this firm?Should this firm operate or shut down in the short run? Why? What is the relationship between marginal revenue and marginal cost as the firm increases output?
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Illustrate what rate of inflation characterized this economy during 1994.
A piece of equipment used for research is purchased for $870,000 and is to be depreciated over a specific period of time. If the salvage value at the end of its depreciable life is $50,000, show the yearly depreciation using a) Straight line metho..
Illustrate what does the term "Recession" mean and how do we know when one occurs. How does government intervene to move the economy out of a recession.
Elucidate Classical economists believed in the self-correcting nature of the economic system. They believed that the major adjustment.
Calvins's Barber Shops, Corporation, has a monopoly on barbershop services provided in the south side of Chicago because of restrictive licensing needs, and not because of superior operating efficiency.
Assume that all states adopt a serious no-fault rule to cover automobile accidents, so that it becomes impossible to sue for damages after an accident.
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