A firm has average costs given by: AC = 400/Q + 50.
(a) (6 points) Based on just the information about AC, is this firm a natural monopoly? Briefly describe why or why not.
(b) (8 points) Suppose that inverse demand is given by P = 90 â Q. What linear price will maximize welfare while allowing the firm at least zero economic profit? How much will be sold by the natural monopoly?
(c) (4 points) Suppose that the natural monopoly sells to two different groups of consumers. If the regulator wants to use Ramsey pricing, what would need to be true about the two groups of consumers?
(d) (4 points) If the regulator used Ramsey pricing, explain whether welfare, producer surplus and consumer surplus for the two groups would rise, fall or stay the same as in part (b)?
(e) (6 points) Suppose the firm can make an investment to lower its fixed costs. The investment costs $25 but lowers fixed costs by $50. Explain whether: (1) the regulator would want the firm to make the investment, and (2) whether the firm would be likely to make the investment under cost-plus and fixed-price regulation.
Sample Solution
The department safety manager performed a task of Oil spill, the oil was spilled on the ground without informing any of the workers in order to test the ability of employees in dealing with various safety situations.What�s more, the manager discus around the safety issues as well as the accidents that can be cussed by oil spill and the correct way of how to deal with similar situations in future. Recommendations The task was completed in a useful way and improve the workers knowledge about safety in the work place. In contrast, while running the task the safety equipment was not found in the proper place also some workers do not have a complete idea of using the equipment. In my opinion, the department should assign some workers to check the safety gear monthly also place it in its proper p In summery the six weeks of internship program has been an interesting experience in Weatherford labs. The training program is mainly to enable the students to apply all the theatrical and practical knowledge in real world to meet the industrial needs. Being in different sections throughout the internship program with multi tasks assigned to the trainee for different purposes is help the trainee to improve all the soft and hard skills as well as gaining new experience and knowledge in various tasks that are related to trainee studies or in other fields that are semi related. Moreover, this internship program also include several activities in safety which was a great opportunity to learn different safety situations in the work place and the suitable way to deal with. All in all, this internship program increase my theoretical as well as practical knowledge in several topics related to my studies which be helpful to me in future works This page of the exposition has 894 words. Download the full form above. s.’ Many verifiable saints expound on such wants, for instance, Martin Luther King Jr’s ‘I had a Dream’ discourse. The renowned Austrian nervous system specialist Sigmund Freud had built up the hypothesis of therapy, or a technique where an examiner finds oblivious issues dependent on dreams and dreams. In spite of the fact that, they are various sorts and implications of a ‘fantasy,’ a longing ‘dream’ is still groundbreaking. A genuine dream is something we will never abandon. We will progress in the direction of it until we have picked up our actual potential. Some case they are dreams, that they are exceptionally ridiculous. >
The department safety manager performed a task of Oil spill, the oil was spilled on the ground without informing any of the workers in order to test the ability of employees in dealing with various safety situations.What�s more, the manager discus around the safety issues as well as the accidents that can be cussed by oil spill and the correct way of how to deal with similar situations in future. Recommendations The task was completed in a useful way and improve the workers knowledge about safety in the work place. In contrast, while running the task the safety equipment was not found in the proper place also some workers do not have a complete idea of using the equipment. In my opinion, the department should assign some workers to check the safety gear monthly also place it in its proper p In summery the six weeks of internship program has been an interesting experience in Weatherford labs. The training program is mainly to enable the students to apply all the theatrical and practical knowledge in real world to meet the industrial needs. Being in different sections throughout the internship program with multi tasks assigned to the trainee for different purposes is help the trainee to improve all the soft and hard skills as well as gaining new experience and knowledge in various tasks that are related to trainee studies or in other fields that are semi related. Moreover, this internship program also include several activities in safety which was a great opportunity to learn different safety situations in the work place and the suitable way to deal with. All in all, this internship program increase my theoretical as well as practical knowledge in several topics related to my studies which be helpful to me in future works This page of the exposition has 894 words. Download the full form above. s.’ Many verifiable saints expound on such wants, for instance, Martin Luther King Jr’s ‘I had a Dream’ discourse. The renowned Austrian nervous system specialist Sigmund Freud had built up the hypothesis of therapy, or a technique where an examiner finds oblivious issues dependent on dreams and dreams. In spite of the fact that, they are various sorts and implications of a ‘fantasy,’ a longing ‘dream’ is still groundbreaking. A genuine dream is something we will never abandon. We will progress in the direction of it until we have picked up our actual potential. Some case they are dreams, that they are exceptionally ridiculous. >
