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

Author Question: Suppose that the only maker of a particular type of horse hair clothing exits the industry because ... (Read 60 times)

madam-professor

  • Hero Member
  • *****
  • Posts: 584
on: Jun 30, 2018
Suppose that the only maker of a particular type of horse hair clothing exits the industry because demand is too low. The correct analysis of this situation is that
 a. the producer's decision is irrational, since monopolies are not limited by the demand curve
  b. the producer's decision is irrational, since monopolies never go out of business
  c. the producer's decision is irrational, since it could simply raise the price
  d. the price received by the producer was lower than the marginal cost in the long run
  e. the price received by the producer was lower than the average total cost in the long run

Question 2

When regulating a natural monopoly, the regulating agency should set price equal to marginal cost.
 a. True
  b. False


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

B


madam-professor

  • Member
  • Posts: 584
Reply 2 on: Jun 30, 2018
:D TYSM

connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

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?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

A maneless male lion, who also has little body hair - from Tsavo East National Park, Kenya A maneless male lion, who also has little body hair - from Tsavo East National Park, Kenya
Apple Clothing Apple Clothing
Transduction Apparatus in Hair Cells Transduction Apparatus in Hair Cells
Primary aging means changes in hair color and skin texture for almost everyone. Primary aging means changes in hair color and skin texture for almost everyone.
One type of safety needle withdraws into a protective sheath when the injection is complete. One type of safety needle withdraws into a protective sheath when the injection is complete.
Gendered Messaging in Children’s Clothing Gendered Messaging in Children’s Clothing
Video: Neural regulation of mechanical digestion- CNS voluntary, ANS & ENS controlled involuntary movements

For a complete list of videos, visit our video library