State owned-natural monopoly
Problem: Think about a firm that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm?
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(a) Determine the short-run supply curve for the competitive firms. (b) Determine the residual demand curve facing the price leader. (c) Calculate the profit-maximizing output for the price leader.
A fiscal policy that reduces a budget deficit could conceivably __________ income if interest rates ______________.
a. What is the equilibrium price of a box? Is this the long-run equilibrium price? b. How many firms are in this industry when it is in long-run equilibrium?
Details: Preliminary market research indicated that target market for IPT has the following characteristics:
Think about a firm that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm?
Derive the aggregate demand and supply functions. Graph accurately. Derive the equilibrium for the combined market. Show the equilibrium on the graph. Show all work.
Suppose that macaroni and cheese is an inferior good. When income increases, and at the same time the price of pasta decreases (pasta is an input for producing macaroni), what happens to the equilibrium price and quantity of macaroni and cheese?
The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market.
Question 1. Perfect competition and the Monopoly a. In what ways is the monopoly different from perfect competition? In what ways are they alike? Discuss explaining the conditions necessary for each of these market structures.
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