« previous next »

Author Question: In Problem 15, under what conditions would GM stop producing the Chevy Volt and exit the market for ... (Read 69 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
In Problem 15, under what conditions would GM stop producing the Chevy Volt and exit the market for electric cars. Explain your answer.
 
  What will be an ideal response?

Question 2

Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
 
  A) J + H B) C + E + J + H C) C + E D) G + H


jharrington11

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 29, 2018
Answer to Question 1

GM will permanently shut down and exit the market in the long run if the price of a Volt is less than GM's average total cost. In this situation, if it remained open GM would incur an economic loss but if it exited the market it would no longer incur an economic loss.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

The black-capped chickadee is a permanent resident in biomes with harsh winter conditions. The black-capped chickadee is a permanent resident in biomes with harsh winter conditions.
How to solve an exponential problem using a table of values (Question 2) How to solve an exponential problem using a table of values (Question 2)
How to solve any percent error problem How to solve any percent error problem
Main Hall, Trajan's Market Main Hall, Trajan's Market
How does PCA reduce the dimension of a statistical problem? How do you select the reduced ... How does PCA reduce the dimension of a statistical problem? How do you select the reduced ...
Problem Problem
Video: How proteins function? How do proteins work?

For a complete list of videos, visit our video library