Login Registrieren

Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

All Textbooks
Economics
Economics Today
Chapter 27
Q. 2- For Critical Thinking

Chapter 27: Q. 2- For Critical Thinking (page 617)

Why do you think that many firms with lengthy truck routes now try to recruit married couples to drive their trucks?

Short Answer

Expert verified

The majority of companies with lengthy truck routes consider hiring married couples to drive their trucks. so they're more accountable and committed to their work.

Step by step solution

01

Introduction.

This $3, 365 -$ mile coast-to-coast path from Newport, Oregon to Boston, Massachusetts is the longest in the United States.

02

Benefits of Route planning.

The following are some of the most significant advantages of route planning.

The planning of routes is more efficient.
Demand has grown.
Time and distance have been cut.
Contact center calls have decreased.

03

Explanation.

Most of the firms with lengthy truck routes is to recruit married couples to drive their trucks. because, they are responsible and more passionate in their work.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers.

a. Briefly explain which of these two aspects of the sale of electricity remains susceptible to natural monopoly problems.

b. Suppose that the potential natural monopoly problem you identified in part (a) actually arises. Why is marginal cost pricing not a feasible solution? What makes average cost pricing a feasible solution?

c. Discuss two approaches that a regulator could use to try to implement an average-cost-pricing solution to the problem identified in part (a).

The table below depicts the cost and demand structure a natural monopoly faces.

a. Calculate total revenues, marginal revenue, and marginal cost at each output level. If this firm is allowed to operate as a monopolist, what will be the quantity produced and the price charged by the firm? What will be the amount of monopoly profit? [Hint: Recall that marginal revenue equals the change in total revenues $(P \times Q)$ from each additional unit and that marginal cost equals the change in total costs from each additional unit.]

b. If regulators require the firm to practice marginal cost pricing, what quantity will it produce, and what price will it charge? What is the firm's profit under this regulatory framework? [Hint: Recall that average total cost equals total cost divided by quantity and that profits equal $(P - A T C) \times Q .]$ .

c. If regulators require the firm to practice average cost pricing, what quantity will it produce, and what price will it charge? What is the firm's profit under this regulatory framework?

Consider the data from Problem $27 - 11$ . Suppose that antitrust authorities have determined that the relevant market includes both e-books and physical books. These authorities perceive that a monopoly situation exists that can be challenged on legal grounds if the value of the Herfindahl-Hirschman Index exceeds $5000$ . On the basis of this criterion, do the antitrust authorities conclude that there are grounds for a legal challenge? Explain.

Research into genetically modified crops has led to significant productivity gains for countries such as the United States that employ these techniques. Countries such as the European Union's member nations, however, have imposed controls on the import of these products, citing concern for public health. Is the European Union's regulation of genetically modified crops social regulation or economic regulation?

Consider panel (b) of Figure 27-2. The quantity Q1 is $2, 000$ units, the price P1 is $\(2$ per unit, the average cost AC1 is $\) 4$ per unit, and the vertical distance to point C is $$ 6$ per unit. What is the dollar amount of the losses earned by this natural monopolist when its price is equal to its marginal cost of producing Q1 units?

See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free