If your cumulative Grade Point Average (GPA) after two years of college is 3.0, and your grades for the current semester average 3.5, what will happen to your cumulative GPA? Explain the similarity of this example to the case of marginal cost and average cost
If the current semester's GPA is above the cumulative, then the cumulative GPA will rise. By the same token, if the firm's marginal cost is above the average cost, the average cost will rise-and if MC is below AC, the latter will be falling.
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In the 1980s, one of the most common sights in the socialist countries, such as the former Soviet Union and North Korea, were long lines for bread, sugar, and other necessities. These countries had price ceilings on these necessities
Some of the socialist nations, such as the former Soviet Union, have moved to a market economy by lifting the price ceilings, while others, such as North Korea, have retained their price ceilings. What prediction do you make about the presence (or absence) of long lines today in the former Soviet Union and North Korea? Explain your answer.
In the above figure, if the natural monopoly is not regulated then consumer surplus is
A) $48 million. B) $60 million. C) $108 million. D) $192 million.