'Ac mc' presentation slideshows

Lecture 35: Natural Monopoly & Public Utility Regulation

519 views • 21 slides

Cost

Cost. Cost concepts. MEANING OF COST. COST is the Expenditure incurred on various inputs to produce goods and services. Cost function : Functional relationship between cost and output. C=f(q) Where f=functional relationship c= cost of production q=quantity of product. TYPE OF COST.

622 views • 14 slides

Economic Optimization

Economic Optimization. Chapter 2. Economic Optimization Process. Optimal Decisions Best decision produces the result most consistent with managerial objectives. Maximizing the Value of the Firm Produce what customers want. Meet customer needs efficiently. Greed vs. Self-interest

461 views • 13 slides

Natural Monopoly

Natural Monopoly. P. AC. MC. D. Q M. Q. Problems with MC pricing. When marginal-cost pricing creates a deficit, one regulatory option is to maintain these prices and subsidize the firm to cover the deficit.

199 views • 8 slides