--%>
Assignment Help - homework help

Problem on effect of a price decrease on total revenue

1. Is it possible for any country to have made gains in access (at the expense of quality) of their rural healthcare system, without any gains in efficiency?  Explain using a PPF diagram.

2. If the own price elasticity for a good is -2.5, what is the likely effect of a price decrease on total revenue?

3. You’ve been asked to assess two alternatives to regulating a monopoly using a ceiling price. Option A is to set the ceiling price 25% below the monopolist’s equilibrium price. Option B is to set the ceiling price 50% below the monopolist’s equilibrium price. Assume your only concern is the efficiency consequences under each option. Which option is preferable? Explain.

   Related Questions in Microeconomics

  • Q : Law of demand in Ceteris Paribus Can

    Can someone help me in finding out the right answer from the given options. The law of demand supposes that the income and tastes of the consumers are: (i) Strong determinants of the prices. (ii) Causes of movements all along the demand curve. (iii) C

    		•
  • Q : Determine income in Loren curve When

    When one family held ALL the income it would be shown upon the Lorenz curve as: (1) line 0A0'. (2) line 0B0'. (3) line 0C0'. (4) line 0D0'. (5) line 0E0'.

    Q : Interest rates of business investors in

    The interest rates business investors into economic capital should pay on a loan: (w) reflect the opportunity costs to society of funding one investment in place of another. (x) are relatively trivial investment costs by investors&rsq

    		•
  • Q : Marginal revenue product and MRP curve

    I have a problem in economics on Marginal revenue product or MRP curve. Please help me in the given question. Demand for the labor through a monopolist in the product market is its: (w) Value of marginal product (or VMP) curve. (x) Marginal revenue product (or MRP) cu

    		•
  • Q : Economies of scale in natural monopoly

    Economies of scale which are substantial relative to market demand result within the market evolving to a: (w) contestable market. (x) collusive oligopoly. (y) natural monopoly. (z) "high tech" industry.

    Q : Determine supply curve for perfectly

    Assume that all such curves in below demonstrated graph are infinitely long straight lines. The supply curve which is perfectly price-elastic is: (1) supply curve S1. (2) supply curve S2. (3) supply curve S3. (4) suppl

    		•
  • Q : Explain the term Realized Yield Explain

    Explain the term Realized Yield? Also write some points on it.

    		•
  • Q : No close substitutes in monopoly When

    When Perpetual Motion Corporation’s recently-invented and patented teleporter buttons have no close substitutes, in that case Perpetual Motion operates: (1) along with absolute certainty of realizing a pure economic profit. (2) in violation of the laws of demand

    		•
  • Q : Negative externalities Give the answer

    Give the answer of following question. Negative externalities arise: A) when firms pay more than the opportunity cost of resources. B) when the demand curve for a product is located too far to the left. C) when firms "use" resources without being compelled to pay for

    		•
  • Q : Recommendation of data on poverty Data

    Data on poverty into the United States recommend that the: (w) sex of the head of the family is unrelated to the poverty rate. (x) race of the head of the family is unrelated to the poverty rate. (y) families headed by African-American or Hispanic wom

    		•