a loud plays a concert late at night in a neighborhood park. The noise produced

Question

a loud plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbor's not attending the concert awake is coly a private cost both a private cost and an external cost neither a private cost nor external cost only an external cost how should the price of a natural monopoly be regulated under the public interest theory of regulation? subsiding other producers to complete with monopoly using a marginal cost pricing rule allowing a price that maximizes the profit of the natural monopoly netting price equal to the average cost of production what can a student in college do to increase demand for his or her labor services? Nothing, there is no way individual can affect demand for their own services. He or she should quit school and look for a job. He or she should move to a state with a large population. He or she should increase his or her marginal product in producing valuable goods or services. the benefit from regulation according to public interest theory go to and from regulation according to capture theory they go to . the entire economy : producers cohesive interest groups: consumers everyone not in the cohesive interest group: government it is impossible to determine who benefits: the general public If the price of capital falls, under what circumstance could the demand for labor increase? The demand for labor can never increase when the price of capital falls the demand for labor will always increase when the price of capital falls it increase if scale of production increase enough none of the above answer is correct

Explanation / Answer

1. d) only external cost. 2) d) setting the price equal to ATC. By setting the price at ATC the firm can produce a higher output than the it produces at Price =MC, and there will be only economic profits 3) d) as the marginal product increases the wage rate also increases. 4) a, the benefit of regulation according to public interest theory goes to the economy, but as per the capture throry, it goes to the regulated monopoly or the company. 5) d It is possible that price of capital decrease can increase the demand for labor. This scenario can be seen in service industry where the capital and labor are not perfect substitutes.

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