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The ECPR has been criticized because it preserves the incumbent's contribution from final good's sales lost to entrants and raises the access price to entrants. Some critics (Economides and White, 1995) argue that the ECPR is potentially inefficient since even an inefficient entrant could increase price competition in the final good, leading to lower prices and an expansion of output if the access price were lower. Why would a regulator set P I above marginal cost? Does the regulated vertically integrated firm necessarily benefit from the exercise of market power in the final-good market? What other reforms might be necessary if a lower access price is used? Why might lowering the price of access below that of the ECPR be a good idea?
Why do economists pay little attention to the algebraic sign of the elasticity of demand for a good with respect to its own price, yet pay careful attention to the algebraic sign of the elasticity of the demand for a good with respect to another g..
Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets.
Which of the following curves- average fixed cost, average variable cost, average total cost, and marginal cost- would shift as a result of the lump-sum tax Why Show this in a graph. Label the graph as precisely as possible.
output per worker yt 4kt 13 the saving rate is 30 percent and the depreciation rate is 13.3 percent. calculate the
1. why does rent control result in a shortage of rental units.2. how does price elasticity of demand affect how much of
3. Would expanding coverage of pharmaceuticals to all Canadians necessarily cost more than is currently spent? Describe one approach to expanding pharmaceutical coverage. 4. Describe the four components of home care policies.
Bulldog Shipping, Inc. has purchased new cargo containers for $500,000. MACRS with a five-year recovery period and an estimated salvage value of $96,000 is to be utilized to write off the capital investment. The company expects to realize net revenue..
What are some things that would affect changes in supply? How can quantity demanded be changed and what if the government raised the minimum wage. How would this policy effect your firm?
a firm has fixed costs of 300 and variable costs of 0.75q 8 per unit produced.a define and find an expression for the
A 40-day strike at Boeing resulted in 50 fewer deliveries of commercial jetliners at the end of the first quarter of 2000. At a cost of $20 million per plane, what was the equivalent end-of-year cost of the strike (i.e., end of fourth quarter) at an ..
Criticize the Areeda-Turner test on the basis
1. if a consumer purchases a combination of commodities x and y such that muxpx 20 and muypy 10 to maximize utility
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