“Discuss the extent to which a monopoly provider of transport will always increase economic efficiency” (20) Economic efficiency is where both allocative and productive efficiency occur, this is where price is equal to marginal cost and the least possible amount of scarce resources are used to produce the maximum output. A monopoly can refer to a single firm in a market or owning 25% and 40% of the market share. The traditional monopoly theory states that there will be productive and allocative inefficiency in the market since, the firm will hold back supply to gain a higher price. It will not produce where average revenue meets marginal costs. In terms of resource allocation this may mean that demand is not fully met by supply.
This means that a strong real may lead to a worsening of the balance of trade – much depends on the value of price elasticity of demand for imports and exports. The impact of appreciation depends on the economy. As Brazil was not in a recession during the appreciation of the real, then the aggregate demand increased and helped reduce inflationary pressures and limit the growth rate. However, an appreciation of the real could also reduce inflation. This makes Brazil’s goods more competitive, leading to stronger exports in the long term, which could improve the current account.
No more freedom, it used to be virtually impossible to get out of the USSR, the country owned you; no more freedom? Heck NO, I am a patriot I will not stand for this, the whole concept of America was freedom, even if choices are made that will improve everyone living, Republicans do not care, your freedom comes
MULTIPLE CHOICE QUESTIONS (2 POINTS EACH) 9. For a typical competitive firm, the price in the long run equilibrium will tend to: A. be greater than average cost B. be equal to average cost C. be less than average cost D. intermediate 10. Which of the following is NOT a problem with monopoly? A. The price does not signal true cost.
Assuming that their NPVs based on the firm's cost of capital are equal, the NPV of a project whose cash flows accrue relatively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life. a. True b. False (11-2) NPV and IRR F I Answer: b EASY [iv]. A basic rule in capital budgeting is that If a project's NPV exceeds its IRR, then the project should be accepted.
a. The MRS and the MRT are not equal. b. The budget line is steeper than the indifference curve at the current consumption level (Y is on the vertical axis and X is on the horizontal axis). c. The consumer’s total utility would increase if he/she chose consumption such that MUX increases and MUY
Not in monetary handouts, but in a manner in which to have a lasting advantage. Also Carnegie believes that taxation will provide an example to those wealthy men who have not done their duty. Also the inheritance taxation will provide more money for society to do what is right; to help improve the society as a whole. Overall I agree with Carnegie. Yet, I only believe the super wealthy should be subject to higher inheritance taxes than normal.
Penetration pricing uses low initial prices to gain market share and slowly increases the price to its normal level. Economy pricing offers basic products that have the lowest customer price possible. Skimming is a price strategy in which companies set high initial product prices that decrease to match lower prices from new competitors. Bundle pricing is a strategy where companies include several different products under one price. This allows a business to provide more products to consumers at a slightly lower price.
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative
In fact they claim that is a right for them to possess the nuclear weapon in order to protect their country against attacks. In the other hand they refuse other country to possess the nuclear weapon. That is the reason why the relation between Iran and United States is so complicated. America is answering violence by using the same method, giving the possibility for every family to keep a gun is not the good answer. The problem is that when you like the American statistics you have the feeling that the country is in a civil war: * 90 guns for every 100 civilians, the highest rate of gun ownership in the world.