This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Rate of return regulation, as currently applied to many natural monopolies such as public utilities, ... (Read 88 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
on: Jun 29, 2018
Rate of return regulation, as currently applied to many natural monopolies such as public utilities,
 
  A) generally involves the use of price caps.
  B) gives the firms an incentive to inflate their costs.
  C) gives the firms an incentive to cut their costs as much as possible.
  D) generally keeps their prices higher than if they were unregulated monopolists.

Question 2

What does the income elasticity of demand measure? How is it calculated?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The income elasticity of demand measures the responsiveness of demand to changes in income. It is calculated by dividing the percentage change in quantity demanded by the percentage change in income.


RODY.ELKHALIL

  • Member
  • Posts: 591
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Exercise increases the heart rate. Exercise increases the heart rate.
Covalent regulation of enzyme activity. Covalent regulation of enzyme activity.
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Regulation of HMG-CoA reductase by ubiquitinmediated proteolysis Regulation of HMG-CoA reductase by ubiquitinmediated proteolysis
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
The radius of the Sun is 6.95 × 108 m. It radiates heat at the rate of 5.32 x 10 The radius of the Sun is 6.95 × 108 m. It radiates heat at the rate of 5.32 x 10
Video: Premenstrual Syndrome

For a complete list of videos, visit our video library