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 78 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
Wow, this really help

Liddy

  • Member
  • Posts: 342
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Tree species richness in North America is correlated with evapotranspiration rate. Tree species richness in North America is correlated with evapotranspiration rate.
Regulation of transcription from the lac operon of E. coli. Regulation of transcription from the lac operon of E. coli.
When a Tornado Strikes: Social Organization Following a Natural Disaster When a Tornado Strikes: Social Organization Following a Natural Disaster
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
Illustration of the mechanism of riboswitch regulation of gene expression Illustration of the mechanism of riboswitch regulation of gene expression
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Digestion Animation

For a complete list of videos, visit our video library