The goals of state and federal regulators can differ significantly. True False

To what extent would you consider the setting up of regulatory bodies an appropriate and effective solution to the principal-agent problem in markets where there is a natural monopoly?

Compare and contrast the public-interest and special- interest theories of economic regulation. What is the capture theory of regulation?

Suppose an industry experience decreasing average costs of production over the relevant range of market demand. Discuss the merits of a regulation requiring the natural monopolist to set a price where demand equals marginal cost and to service all willing customers. What about where demand equals average cost? Are any practical difficulties likely to be encountered with either regulatory program?- Chapter 9 - Monopoly - Microeconomics

Q3. Say the town of Manchester has regulated its water utility so that it covers the cost of its production for its water and also adds a 20% profit to the price it charges its customer. What would this regulation example be considered?   a.) Price-cap regulation   b.) Cost-plus regulation   c.) Break-even regulation

Question 24.24  Any activity designed to transfer income or wealth to a particular individual or firm at society’s expense is called                 patent protection.        X-inefficiency.        price discrimination.        rent-seeking.

Multiple Choice   $3,125   $1,562.5   $6,250   $4,687.5

10 8 7 5678 Price = 10, Quantity = 5 Price = 3, Quantity = 5 MC Price = 8, Quantity = 7 Q If the monopolist depicted in the above figure is maximizing profits, the correct price/output combination will be: Price = 6, Quantity = 6 ATC D

Research arguments for and against one of these topic questions: Should government raise the minimum wage?or Should government set the price of gasoline?   Create a graph to show the effect (shortage or surplus) of the government regulation you chose. Discuss why these issues do or do not affect your claim. Include the appropriate labels for your graph such as: price quantity supply demand surplus or shortage

26 $55 $50 $45 I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand and Marginal Revenue curves for a monopolist. Which of the following general relationships is NOT demonstrated in the diagram? Select one: a. Price is greater than Marginal Revenue. b. Price equals Demand. c. The Marginal Revenue curve is steeper than the Demand curve. d. Marginal Revenue equals Price at each Output. $$$