ECON 4350 Midterm: ECON 4350 UGA 4350.hexam2
Document Summary
Spring 1999: draw a diagram for an electric utility with economies of scale facing a downward sloping market demand curve. Indicate the regulated price (pr) and quantity (qr) as well as the monopoly unregulated price (pm ) and quantity (qm ). 1: classroom experiments: i have drawn the aggregate demand curve and mc curve for each 4- rm market used in our classroom experiments, indicate the competitive solution as pc and qc. 3: i have drawn cost curves indicating increasing returns in the long distance shipment of goods. Label the natural market area of rm a. 4: consider the problem of two successive monopolists. First, assume they have merged in gure a), where i have drawn the demand and mc curve. Now in gure b), with the same demand and mc curve, assume that there is no merger. M , that the manufacturer will produce and the price, p1, for which he will sell this output to the distributor.
