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

Author Question: If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to ... (Read 69 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Jun 29, 2018
If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to economic profits for these utilities. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

The used car market has a significant amount of adverse selection because
 
  A) the seller knows more about the car than the buyer.
  B) the buyer can easily find out more about the car than the seller.
  C) buyers and sellers rarely have enough information.
  D) the transaction costs of the used car market are prohibitive.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

marict

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect. Imposing marginal cost pricing on natural monopolies results in the firms incurring economic losses not economic profits.

Answer to Question 2

A


Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
Reply #2 on: Jun 29, 2018
Thank you :)


marict

  • Sr. Member
  • ****
  • Posts: 304
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

The coagulation cascade. Both the intrinsic pathway and extrinsic pathway lead to a common pathway ... The coagulation cascade. Both the intrinsic pathway and extrinsic pathway lead to a common pathway ...
An intake manifold gasket that failed and allowed coolant to be drawn into the cylinder(s). An intake manifold gasket that failed and allowed coolant to be drawn into the cylinder(s).
Typical Startup Cost Categories Typical Startup Cost Categories
Lead leaching from electronic waste (e-waste) Lead leaching from electronic waste (e-waste)
Writing can lead to psychological benefits Writing can lead to psychological benefits
Calculate the weighted-average cost of the following inventory purchases:DateQuantity ... Calculate the weighted-average cost of the following inventory purchases:DateQuantity ...
Video: Global warming and its effect on climate change

For a complete list of videos, visit our video library