Nationalization is the
acquisition of private
companies by the public sector.
Privatization is the return of
state enterprises to private
ownership and control.
A natural monopoly’s average
costs keep falling as its output
rises. It undercuts all smaller
competitors.
A two-part tariff charges a
fixed sum for access to the
service and then a price per unit
that reflects the marginal cost of
production.
Regulatory capture implies
that the regulator gradually
comes to identify with the
interests of the firm it regulates,
becoming its champion not its
watchdog.
The discount rate is the
interest rate used to calculate
present values of future streams
of benefits or costs.
Peak load pricing is price
discrimination to charge peaktime
users extra because of the
higher marginal cost of
supplying them.
|