Category: Economics

➤ How do researchers measure how individualistic a country is?
Researchers use survey-based indices like Hofstede’s Individualism score, the GLOBE study, and the World Values Survey. They also track indicators such as household composition, workplace practices, and the legal emphasis on individual rights. These measures show tendencies for personal goals, loose social ties, and lower responsibility to in-groups.

➤ How does a natural monopoly affect price setting?
A natural monopoly has high fixed costs and declining average costs across relevant output. Marginal-cost pricing would be efficient but often fails to cover total costs. Regulators therefore use average-cost pricing, two-part tariffs, or subsidies to allow universal service while limiting excessive markups. The chosen mechanism depends on investment needs and fairness goals.

It is possible for total revenue to increase when prices rise because

If a price floor of 70 is set in this market, what will be the dwl?