Discuss the difference between fair pricing and marginal cost pricing in regulated industries.
Answer to relevant QuestionsWhy would economists argue in favor of allowing monopolies and oligopolies to set their own prices undisturbed by government? What assumptions do they make concerning economies of scale? If you wait long enough, monopolies disappear. Explain. What is a public good? How does it differ from a near-public good? What is the relationship between the law of diminishing returns and the downward slope of the marginal physical product curve? Two good friends, Mojo Nixon and Natalie Mer chant, grew up together, went to the same schools, ranked identically in IQ testing, excelled in every subject, and went on to earn Ph.D.'s. Natalie became a professor of finance; ...
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