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If regulation of a monopoly results in a price equal to marginal cost but price is below average total costs?
Wiki User
∙ 10y ago
efficiency in allocation will be less
Wiki User
∙ 10y ago
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How could weistinguish between average propensity to consume from marginal propensity to consume?
The average propensity to consume is the fraction of total disposable income that households spend on consumption (as opposed to saving for example) whereas marginal propensity to consume is the additional consumption that results from an additional dollar of disposable income.
Why a monopoly can lead to inefficient outcomes?
There are various reasons why monopoly leads to an inefficient outcome. Some of the reasons are as follows: * It produces less output that what a competitive market would and charge higher price which ultimately leads to a decline in consumer surplus and a deadweight loss. * Monopoly charges a price above its marginal cost, i.e. P > MC, and this results in an allocative inefficiency * A monopoly doesn't produces at the lowest point of the average cost curve (AC) and hence it leads to production inefficiency. * Monopoly has less incentive to cut cost as it doesn't face competition. This is often termed as X-inefficiency. * A monopoly makes supernormal profit (economic profit), i.e. Q * (AR - AC), leading to an unequal distribution of income. * Monopoly produces less than perfect competition and hence creates unemployment of resources. * By producing less in order to charge higher price, monopoly creates an artificial scarcity. The inefficiency associated with a creation of artificial scarcity is called the Deadweight Loss. (Written by Manish Regmi )
What is the end results of the creation of a monopoly?
One company controls a whole industry.
What revenue is the change in total revenue that results from selling one more unit of output?
Marginal Revenue =
What would cause marginal costs to increase?
By definition marginal cost is the change in total costs for each additional item produced. Marginal costs will decrease when changes in inputs result in costs increasing at a decreasing rate. An example might be gains in productivity when hiring an additional unit of labor results in a more than proportional increase in output. Marginal costs would increase when an additional unit of an input results in a less than proportional increase in output (assuming input prices are constant).
How could weistinguish between average propensity to consume from marginal propensity to consume?
The average propensity to consume is the fraction of total disposable income that households spend on consumption (as opposed to saving for example) whereas marginal propensity to consume is the additional consumption that results from an additional dollar of disposable income.
What type of regulation results from the activites of the endocrine and the nervous system?
Extrinsic regulation
When will 6th semester results come for trichy Anna univ 2008R?
Anna University UG PG 1st 3rd 5th 7th Semester Nov Dec 2015 Results - UG PG Regulation 2008 Regulation 2013 Regulation 2015 Results Nov Dec 2015 Jan Feb 2016 Exam Results Declared
Why a monopoly can lead to inefficient outcomes?
There are various reasons why monopoly leads to an inefficient outcome. Some of the reasons are as follows: * It produces less output that what a competitive market would and charge higher price which ultimately leads to a decline in consumer surplus and a deadweight loss. * Monopoly charges a price above its marginal cost, i.e. P > MC, and this results in an allocative inefficiency * A monopoly doesn't produces at the lowest point of the average cost curve (AC) and hence it leads to production inefficiency. * Monopoly has less incentive to cut cost as it doesn't face competition. This is often termed as X-inefficiency. * A monopoly makes supernormal profit (economic profit), i.e. Q * (AR - AC), leading to an unequal distribution of income. * Monopoly produces less than perfect competition and hence creates unemployment of resources. * By producing less in order to charge higher price, monopoly creates an artificial scarcity. The inefficiency associated with a creation of artificial scarcity is called the Deadweight Loss. (Written by Manish Regmi )
When someone buys a fourth T.V for his house what is the results?
There's a decrease in the marginal utility of the television.
What are the results of the Ottoman loss of monopoly over the Indian trade?
ottoman empire?
What is the end results of the creation of a monopoly?
One company controls a whole industry.
What revenue is the change in total revenue that results from selling one more unit of output?
Marginal Revenue =
What would cause marginal costs to increase?
By definition marginal cost is the change in total costs for each additional item produced. Marginal costs will decrease when changes in inputs result in costs increasing at a decreasing rate. An example might be gains in productivity when hiring an additional unit of labor results in a more than proportional increase in output. Marginal costs would increase when an additional unit of an input results in a less than proportional increase in output (assuming input prices are constant).
What is marginal control costs?
The increase or decrease in the total cost of a production run for making one additional unit of an item. It is computed in situations where the breakeven point has been reached: the fixed costs have already been absorbed by the already produced items and only the direct (variable) costs have to be accounted for. Marginal costs are variable costs consisting of labor and material costs, plus an estimated portion of fixed costs (such as administration overheads and selling expenses). In companies where average costs are fairly constant, marginal cost is usually equal to average cost. However, in industries that require heavy capital investment (automobile plants, airlines, mines) and have high average costs, it is comparatively very low. The concept of marginal cost is critically important in resource allocation because, for optimum results, management must concentrate its resources where the excess of marginal revenue over the marginal cost is maximum. Also called choice cost, differential cost, or incremental cost. Read more: http://www.businessdictionary.com/definition/marginal-cost.html#ixzz2Mdg26AC0
The average of 9 results is 50 The average of first four results is 52 and average of last 4 results is 49 What is the fifth result?
46
What is the definition of marginal output of labor?
The change in output that results from employing an added unit of labor (hiring 1 extra person).
