To ensure that utilities receive a normal rate-of-return, regulators set price equal to: a. Marginal costs b. Short-run average variable costs c. Long-run average variable costs d. Demand
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To ensure that utilities receive a normal rate-of-return, regulators set
a. Marginal costs
b. Short-run
c. Long-run average variable costs
d. Demand
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- Description of the event of fresh milk in a company: Elasticity and Its Application - Determine elasticity (may not have data but can be argued qualitatively)Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural resource. a. How should the analysis of the maximization of the discounted profits from selling this resource (Equation 17.63 be modified to take this fact into account? b. Suppose that the demand for the resource in question had a constant elasticity form q(t)=a[p(t)]b . How would this change the price dynamics shown in Equation 17.67? c. How would the answer to Problem 17.7 be changed if the entire crude oil supply were owned by a single firm?What is the price elasticity of demand at the profit-maximizing price for a company that has demand function Q = 140 - 0.2P and cost function C = 100Q? A. -1/5B. -1C. -4/3D. -2
- Industry demand and supply for a new soft drink NeuCola is as follows: Qd = 460,000 – 100,000 P + 22,500 Pc + 21 Y + 2,000 T Qs = 40,000 + 80,000 P – 60,000 PL – 5,000 Pk Where P is average price of the drink in $ per pack, Pc is average wholesale price other branded drinks in the market, Y is income in $, T is average daily temperature in degrees, PL is average wage of labor in $ per hour and Pk is the average cost of capital in $. When quantity is expressed as a function of price, what are NeuCola’s demand and supply curves if Pc = $8, Y=$10,000 billion, T=75 degrees, PL=$10 and Pk=$12. Will there be surplus or shortage of NeuCola when P = $5, $7 and $9? Use a table to show values of quantity demanded and quantity supplied at each level of price. (Values of Qd and Qs calculated in millions may be rounded in the table). Calculate the market equilibrium price and equilibrium output. 4. Draw a labelled hypothetical demand and supply model…Industry demand and supply for a new soft drink NeuCola is as follows: Qd = 460,000 – 100,000 P + 22,500 Pc + 21 Y + 2,000 T Qs = 40,000 + 80,000 P – 60,000 PL – 5,000 Pk Where P is average price of the drink in $ per pack, Pc is average wholesale price other branded drinks in the market, Y is income in $, T is average daily temperature in degrees, PL is average wage of labor in $ per hour and Pk is the average cost of capital in $. a. When quantity is expressed as a function of price, what are NeuCola’s demand and supply curves if Pc = $8, Y=$10,000 billion, T=75 degrees, PL=$10 and Pk=$12. b. Will there be surplus or shortage of NeuCola when P = $5, $7 and $9? Use a table to show values of quantity demanded and quantity supplied at each level of price.In cost plus regulation, regulators calculated the average cost of production, added in an amount for the normal rate of profit the firm should expect to earn, and set the price for consumers accordingly. In price cap regulation, the regulator sets a price that the firm can charge over the next few years. What is the problem of price cap regulation? Group of answer choices It will cause long term certainty in the market. It will not work if the price regulators set the price cap unrealistically low. It will not work if the price regulators set new prices every six months. Low level managers will have too much power.
- Which economic utilities (values) are associated with supply chain management? O Exchange, Time and Place O Form, Time, and Ple O Form, Exchange, and Time O Exchange, Time, and Integration O Exchange, Time, and Value Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Suppose demand and supply curves for you company’s product are given by:QD = 10 -XP QS =5 +YP You will need to find value for X between [0.1 -3] and Y between [0.1 -3] based on the elasticity of demand and supply. This elasticity in turn depends on the type of product, marketstructure and competitive advantage of the company. In this case, the product is an electric car and the price elasticity of demand is high.The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the following correctlyexpresses the total revenue? A. 10 − 28D^2 B. 28D = 10 C. 10D − 28D D. 10D −28D^2
- Your manager is only concerned with selling her product for the highest price possible under profit- maximizing conditions. In which of the two markets should she operate? • Market 1: - Demand:Q=100-2P - MarginalCost:MC=15 • Market 2: - Own-PriceElasticity:εQ,P=-2.5Note:Thisimpliestheown-priceelasticityis constant at all points. - MarginalCost:MC=15 a. She should operate in Market 1, as it has the highest profit-maximizing price. b. She should operate in Market 2, as it has the highest profit-maximizing price. c. She is indifferent, as each market has an equal profit-maximizing price.In a perfect competition type of market; price is $250.00, quantity is 10,000, lump-sum tax is $5,000, price elasticity of demand is -1.5, and price elasticity of supply is 1. What is the price with tax for the perfect competition marketA firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB = 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?
