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A monopolist produces a product which has high investment cost. The marginal cost of the product is very small (negligible). The monopolist has a patent for the product. a. Show in a chart the price of goods that would arise if the company is unregulated and explain why. What is the effective price for the product? View deadweight loss that arises if you set a monopoly price. b. View in another chart and explain that the lowest price as the supervisory authority may apply, provided that it would still persuade the company to develop the product. View deadweight loss that arises from this price. How does this work compared to the deadweight loss caused by monopoly price? c. Suppose you have accurate information on the company's fixed costs. How can you use price regulation on businesses, coupled with a subsidy to the company, to get an effective amount of the goods provided at the lowest cost to the government?
Write the regression equation. 2. Interpret the regression constant and regression coefficient, 3. Forecast a value for the dependent variable,4. Test the significant of the regression coefficient at an alpha level of .05, 5.Test the overall signific..
Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
q.the metropolitan book company assumed with certain that the ordering cost is 1200 per order as well as the inventory
A warehouse is proposed costing $200,000. The warehouse has a useful life of 35 years and a salvage value of $35,000. Annual receipts of $37,000 are expected, annual maintenance and administration costs will be $8,000/year and taxes $5,000 per year. ..
Explain why net exports and net capital outflow are always equal. Explain why higher real interest rates lead to lower net capital outflow.
An increase in the price of a product (P), along with an increase in the price of an input factor (PI), is certain to lead to an increase in quantity supplied (QS). Indicate whether you believe the statement is True or False, and then briefly explain..
Explain how a bill become a law in order.the bill goes back to the floor of the senate for consideration. the house committee, compairised of members from both houses of congress,works outany differences concerning the bill.
The principle marginal revenue equal-marginal-cost rule for maximizing profit
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Now suppose $200 of the avera..
A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats ke..
Based on your knowledge of the Commerce Clause, what would happen if a business or individual sued Oregon over Measure 91, arguing that they were injured because their employees are now arriving to work “intoxicated” on legal marijuana?
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