Problem fogel graded

For maxima rein in startdoor(a) should use plectrum A b. For maximum rule Remote should use option 8 c. For maxima atone Remote should use option A d. For equal probability criterion rule Remote should use option A Chapter 16 Government Regulation of line of business 2. When there is a shortage in the industry or firm, it will emphatically result in an on a sink floor apportioning of resources. Under allocation screwing discover without any shortage. For example, if the market place is in a monopolistic stage, there is no shortage. The buyers can buy everything they want at a set price.There be various situations where the market can fail due to to a lower place allocation of resources that ar not caused by shortages. For instance, if the task of minting a building was plan to finish at a true date and there was not teeming paint and painters, the manager did not portion and did not calculate the correct bar of paint needed and did not gull enough painters. Thus , a shortage is not a necessary condition for under allocation of resources. 4. Price gouging seems to occur afterwards natural disasters such as hurricane Strain, Rata, and Sandy.After a disaster, the community is trying to recover from the homes that they present lost and they atomic number 18 trying to pass water back on their feet. However, many individuals and companies are charging market prices or goods such as bollix upoline, bottled water and other necessary items at a higher price than the market. consort to the FTC price gouging laws are not required, they are counterproductive. For instance, in 2005, after the hurricane Strain and Rata, it caused a shortage in gasoline and it could cast possibly triggered an energy emergency (National Center, 2007).If anti- gouging laws are enforced by legislation to lower gas prices than what the market dictates during a show shortage, FTC said that wholesalers and retailers will run out of gasoline and consumers will be worsene d off (Stresses, Furthermore, anti-gouging laws end up sound companies who 2001). Have excess and reserves in advance during a crisis. For instance in the Strain hurricane, one of the lessons learned was to reward companies who have excess of oil and gas at the time when it is greatly needed.