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 69 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
Wow, this really help

abro1885

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

An artificial vagina, used to collect horse semen An artificial vagina, used to collect horse semen
General Andrew Jackson, on the horse, exhorts his men to throw back the advancing British; they succ General Andrew Jackson, on the horse, exhorts his men to throw back the advancing British; they succ
Gerotor-type oil pump driven by the crankshaft. Gerotor-type oil pump driven by the crankshaft.
Carbonyl groups reaction type Carbonyl groups reaction type
The types of topological interconversions catalyzed by type II topoisomerases The types of topological interconversions catalyzed by type II topoisomerases
Cycads, a Type of Gymnosperm Cycads, a Type of Gymnosperm
Video: Non-polar compounds - insolubility

For a complete list of videos, visit our video library