--%>
Assignment Help - homework help

Problem on effect of a price decrease on total revenue

1. Is it possible for any country to have made gains in access (at the expense of quality) of their rural healthcare system, without any gains in efficiency?  Explain using a PPF diagram.

2. If the own price elasticity for a good is -2.5, what is the likely effect of a price decrease on total revenue?

3. You’ve been asked to assess two alternatives to regulating a monopoly using a ceiling price. Option A is to set the ceiling price 25% below the monopolist’s equilibrium price. Option B is to set the ceiling price 50% below the monopolist’s equilibrium price. Assume your only concern is the efficiency consequences under each option. Which option is preferable? Explain.

   Related Questions in Microeconomics

  • Q : Shifting demand of labor The demand for

    The demand for labor will shift because of changes in all of the given except: (w) prices of other resources. (x) prices of output. (y) MPP (z) wages. Hello guys I want your advice. Please recommend some views for

    		•
  • Q : Least consistency for law of demand The

    The demand curve for socket sets from the list below which is least consistent along with the law of demand is: (w) demand curve D1D1. (x) demand curve D2D2.  (y) demand curve D3D3

    		•
  • Q : Instance of Implicit Costs Can someone

    Can someone help me in finding out the most right answer from the given options. The instance of an implicit cost would be: (i) Salaries paid to the employees. (ii) Payments for repairs on the company-owned machine. (iii) Rent paid on building company utilizations. (i

    		•
  • Q : Infinity elasticity of demand within

    When price changes for fresh peaches don’t modify total revenue to peach farmers, then the price elasticity of demand for peaches: (w) constant beside a linear demand curve. (x) infinity (the demand curve is horizontal). (y) uni

    		•
  • Q : Main deficiencies of current welfare

    Not among main deficiencies of the current welfare system is which it sometimes: (w) gives low benefits to the poor relative to total budgetary outlays. (x) collects taxes from the poor to provide benefits to the rich. (y) yields effective marginal ta

    		•
  • Q : Differentiated goods in monopolistic

    Several other market structures may pivot around goods which are heterogeneous, although the market structure which absolutely needs goods to be differentiated within the minds of consumers is. (i) perfect competition. (ii) pure competition. (iii) mon

    		•
  • Q : Classified industries as oligopolistic

    Industries which would be classified as oligopolistic comprise: (w) public utilities. (x) postal service. (y) breakfast cereal. (z) retailing. Hello guys I want your advice. Please recommend some views for above

  • Q : Inflation premium Describe the term

    Describe the term Inflation premium and how it is the prospect of future inflation?

    		•
  • Q : Effects of high probability of

    Since of the high probability of bankruptcy and default of a latest corporation, new corporations: (i) Encompass little trouble selling bonds. (ii) Would prefer to the issue stock. (iii) Encompass more trouble selling bonds than the established corporations. (iv) Woul

    		•
  • Q : Total variable cost when maximizes

    Total variable cost when this firm maximizes economic profits would be: (i) $12,000 per period. (ii) $24,000 per period. (iii) $32,000 per period. (iv) $48,000 per period. (v) $60,000 per period.