« previous next »

Author Question: Refer to Table 15-4. What is the amount of the deadweight loss generated by Shakti when it produces ... (Read 46 times)

awywial

  • Hero Member
  • *****
  • Posts: 577
on: Jun 29, 2018
Refer to Table 15-4. What is the amount of the deadweight loss generated by Shakti when it produces the monopoly output?
 
  A) 124 B) 42 C) 36 D) 12

Question 2

What is meant by excess capacity? How does it relate to consumer utility?
 
  What will be an ideal response?


Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Excess capacity refers to a situation where a firm does not produce at the lowest possible average cost. In other words, economies of scale have not been exhausted. Excess capacity is an inevitable consequence of product differentiation. Firms differentiate their products in order to appeal to consumers' varied tastes. Consumers are, therefore, better offthey have greater utilitythan they would be if companies did not differentiate their products. Consumers are willing to pay for the higher costs that result from product differentiation.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

awywial

  • Hero Member
  • *****
  • Posts: 577
Reply #2 on: Jun 29, 2018
Correct answers!


Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Diabetes mellitus. The metabolic disease diabetes mellitus, with symptoms of polydipsia, polyuria, a Diabetes mellitus. The metabolic disease diabetes mellitus, with symptoms of polydipsia, polyuria, a
Determining a good table height. Stand facing the table with your hands at your sides. Adjust the ... Determining a good table height. Stand facing the table with your hands at your sides. Adjust the ...
How to create a table of values from an equation and graph How to create a table of values from an equation and graph
How to create a frequency table and histogram from raw data How to create a frequency table and histogram from raw data
Gene-expression analysis generated from expression DNA microarrays Gene-expression analysis generated from expression DNA microarrays
Video: Glycolysis Animation

For a complete list of videos, visit our video library