Price takers at the mercy of commodity markets.  Recall the comparison of MC and MR?  What happened when gold prices were high and what will happen to output when they fall?

 

http://www.bloomberg.com/news/2014-11-05/plunging-gold-price-has-mining-companies-selling-at-loss.html (Links to an external site.)

 

Also, public regulation of utility companies:  Why must the regulators allow rates to rise?

 

http://www.opb.org/news/article/oregon-public-utility-commission-approves-rate-changes-for-natural-gas/ (Links to an external site.)

 

INSTRUCTIONS:

 

1. DOUBLE SPACED; 1 x PAGE; 4 x PARAGRAPHS

 

2. Use TWO NEWS articles for your paper IN ADDITION to the TWO references you HAVE to use given by the assignment question. SUMMARIZE in THREE sentences (for EACH article) what the article is about.

 

3. Use ALL of the following VOCABULARY TERMS in your paper:

 

explicit costs	implicit costs	economic profit
accounting profit	production function	marginal product
marginal cost	marginal revenue	efficient scale
economies of scale	diseconomies of scale

 

4. BOLD the VOCABULARY TERMS & make them RED FONT in your writing.

 

5. In ONE sentence, DEFINE the VOCABULARY TERMS; CLEARLY & CONSISELY somewhere in your writing. All this has to be INTEGRATED into the essay.

 

6. APA citing & formatting