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The reason a profit-maximizing natural monopolist cannot set price equal to marginal cost is that it would:
Then be forced to produce more than it could sell.
Then be forced to produce more than the socially optimal level of output.
Earn excessive profits, which would attract new firms into the market.
Suffer losses since price would be less than average cost.
Determining the quantity of medical services based on require instead of the market can lead to- An over provision of medical services, An under provision of medical services
Describe what is meant by the Gold Standard and what were the problems with the gold standard?
Briefly explain the relationship between the natural rate of unemployment and potential output
Are prices an accurate measure of good's total value are prices an accurate measure of a good's marginal value what's the difference can you think of a good that has high total value but low marginal value use this concept to explain why professi..
your supervisor has been asked many questions about how the economy works and why the idea of limited resources is such
If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?
Employees at Foxconn factories described in the e-Activity worked more hours than allowed under Chinese labor laws. Yet the violation of these standards is widespread in manufacturing and the demanding treatment of workers is commonly accepted. Co..
How many nurses does National Hospital employ, and what wage will National pay its nurses, what is the deadweight loss arising from monopsony?
Begin by explaining fiscal policy.
According to the rational-expectations approach, if everyone believes that policy-makers are committed to reducing inflation, the cost of reducing inflation- the sacrifice ratio-will be lower than if the public is sceptical about the policymakers' in..
If the inflation rate is 18%, the nominal rate of interest on the CD is 24%, and the interest is taxable (at a rate of 25%), what is the after-tax real interest rate on the CD? Hint: first calculate the after-tax nominal rate.
What are the ethical issues in this case? Who are the stakeholders and how are they impacted by this situation? Do you agree with Feinberg’s assertion that “you have to draw the line somewhere?”
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