Why the state will have to subsidize natural monopolies

Reference no: EM131919140

Problem

Suppose that your state is considering a law that would force all monopolies to charge the efficient price that would prevail if the market were competitive. Explain to your legislator why the state will have to subsidize natural monopolies if this law goes into effect.

Reference no: EM131919140

Questions Cloud

Formulate a linear mathematical model to achieve : A portfolio manager has developed a list of six investment alternatives for a multiyear horizon.

Which barrier to entry best describes economies of scale : Which barrier to entry best describes this situation-scarce resources, economies of scale, government intervention, or aggressive tactics?

Evaluate the suitability of lean services to the department : What measures should be used to evaluate the performance of this department? Evaluate the suitability of lean services to this department.

Why museum price discriminate on admission but not souvenirs : Suppose a museum charges different entrance fees for children, students and adults. Explain why the museum price discriminates on admission but not souvenirs.

Why the state will have to subsidize natural monopolies : Explain to your legislator why the state will have to subsidize natural monopolies if this law goes into effect.

Determine the total cost of ownership : Consider the purchase of a new mobile phone. How would you determine the total cost of ownership? What are the costs that you might incur before the purchase.

Explain to your legislator the pros and cons of the approach : Suppose that your state is considering a law that would force all monopolies to charge. Explain to your legislator the pros and cons of this approach.

Propose an adjustment for any loss incurred : Posing as a representative of an organization with a problem with a product or service, invent reasonable details, including those regarding your employment.

How would you do a spend analysis : How would you do a spend analysis if you were the supply manager for a large state university? The top management team at your company is considering.

User Account

All Pages