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goldfiish [28.3K]
3 years ago
12

As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the result

ing output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.
Business
1 answer:
ASHA 777 [7]3 years ago
7 0

Answer: c. it ensures productive efficiency.

Explanation:

The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.

With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.

This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.

Therefore, the correct option is C "it ensures productive efficiency".

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Answer:

Explanation:

What is given:

Demand  Prob Cumulative Prob

5         0.25 0.25

10         0.45 0.70

15         0.20 0.90

20          0.10 1.00

Cost of underage or profit lost, Cu = Selling price - Cost per dozen = 10 - 6.35 = 3.65

Cost of overage or cost of a lost sale, Co = Cost per dozen - Salvage value = 6.35 - 2 = 4.35

The critical fractile CF = Cu / (Co + Cu) = 3.65 / (4.35 + 3.65) = 0.456

For the order quantity to become optimal it shoud be greater than or equal to the CF.

Let's see when this happens:

Demand (dozens) Prob Cumulative Prob

5                         0.25  0.25 < 0.456

10                         0.45  0.70 > 0.456

15                         0.20  0.90

20                         0.10          1.00

This hapeens for 10 dozens of order size.

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3 years ago
What is scientific management theory??​
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Scientific management is a management theory that analyzes work flows to improve economic efficiency, especially labor productivity.
5 0
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Acme co. just completed the incorporation process and received its articles of incorporation from the state. at the first organi
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The officer's most important task is to <span>adopt by-laws,
In business term, by-laws refers to set of rule that created by the company in order to control the action of its members.
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3 years ago
SOMEONE PLS HELP ME!!
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Answer:sales

Explanation:

8 0
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Kathy has a broken washing machine and she searches online for several hours comparing brands and features. Then she goes to thr
snow_tiger [21]

Answer: Extended

Explanation:

 The extended problem solving variation is one of the process in which the customers are trying to get all the information which is related to the products and the specific brand for the buying purpose.

According to the given question, Kathy is searching online for buying the appliance that is washing machine and she comparing various types of features and the brands based on the model.

Based on the given scenario, the Kathy's purchasing is one of the example of extended problem solving variation where the customer does not aware about the brands and the actual features of the products.  

Therefore, Extended problem-solving variation is the correct answer.

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