Long Run-Equilibrium of Firm and Industry
... Short-run is a period of time in which a firm can change output by changing variable factors of production such as raw materials, labor, energy etc. The firm can not change fixed factors of production such as land, building, vehicles, and machineries due to shortage of time. New firms can not enter ...
... Short-run is a period of time in which a firm can change output by changing variable factors of production such as raw materials, labor, energy etc. The firm can not change fixed factors of production such as land, building, vehicles, and machineries due to shortage of time. New firms can not enter ...
需求與彈性
... expenditure on the item increases. If your demand is inelastic, a 1 percent price cut increases the quantity you buy by less than 1 percent and your expenditure on the item decreases. If your demand is unit elastic, a 1 percent price cut increases the quantity you buy by 1 percent and your expenditu ...
... expenditure on the item increases. If your demand is inelastic, a 1 percent price cut increases the quantity you buy by less than 1 percent and your expenditure on the item decreases. If your demand is unit elastic, a 1 percent price cut increases the quantity you buy by 1 percent and your expenditu ...
Monopolistic Competition
... and the organization of industry. The previous two chapters developed the two extreme forms of market structure—competition and monopoly. The market structure that lies between competition and monopoly is known as imperfect competition. There are two types of imperfect competition—monopolistic compe ...
... and the organization of industry. The previous two chapters developed the two extreme forms of market structure—competition and monopoly. The market structure that lies between competition and monopoly is known as imperfect competition. There are two types of imperfect competition—monopolistic compe ...
Applications of Linear and Quadratic Functions in Business and
... a. When finding the maximum (minimum) of a quadratic function, find the vertex 1. The graph of a Quadratic function ( y ax 2 bx c ) is a parabola. b 2. Vertex of a parabola: Use x to find the x value and then sub x in to get y…(x, y) 2a b. If a revenue function is a parabola opening down, t ...
... a. When finding the maximum (minimum) of a quadratic function, find the vertex 1. The graph of a Quadratic function ( y ax 2 bx c ) is a parabola. b 2. Vertex of a parabola: Use x to find the x value and then sub x in to get y…(x, y) 2a b. If a revenue function is a parabola opening down, t ...
Elastic Demand
... necessity or a luxury has a great impact on the good’s elasticity of demand for that person. ...
... necessity or a luxury has a great impact on the good’s elasticity of demand for that person. ...
ECONOMIES OF SCALE When doubling on input
... Total sales(S) of the industry does not get affected by pie the firm can only gain a customer at the expense of another firm. Another assumption is that all firms in the industry are symmetric , that is , the demand and cost functions of all firms are identical For the calculation , we need n and P’ ...
... Total sales(S) of the industry does not get affected by pie the firm can only gain a customer at the expense of another firm. Another assumption is that all firms in the industry are symmetric , that is , the demand and cost functions of all firms are identical For the calculation , we need n and P’ ...
Micro_Ch12-10e
... A perfectly competitive firm’s supply curve shows how the firm’s profit-maximizing output varies as the market price varies, other things remaining the same. Because the firm produces the output at which marginal cost equals marginal revenue, and because marginal revenue equals price, the firm’s sup ...
... A perfectly competitive firm’s supply curve shows how the firm’s profit-maximizing output varies as the market price varies, other things remaining the same. Because the firm produces the output at which marginal cost equals marginal revenue, and because marginal revenue equals price, the firm’s sup ...
ANSWERS TO END-OF-CHAPTER QUESTIONS
... Assume a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profits, (d) allocation of resources, and (e) impact upon the distribution of income. Since both monopolists and competitive firms follow the MC = MR rule in m ...
... Assume a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profits, (d) allocation of resources, and (e) impact upon the distribution of income. Since both monopolists and competitive firms follow the MC = MR rule in m ...
REDEEMER`S UNIVERSITY
... b. has no choice but to charge the equilibrium price that results from the market supply and demand curves. c. takes her price from her average total cost curve. d. sells her products at different prices to different customers. 11. The statement that marginal cost = marginal revenue leads to profit ...
... b. has no choice but to charge the equilibrium price that results from the market supply and demand curves. c. takes her price from her average total cost curve. d. sells her products at different prices to different customers. 11. The statement that marginal cost = marginal revenue leads to profit ...
Firms in Competitive Markets
... certain product or service or otherwise on a password-protected website for classroom use. ...
... certain product or service or otherwise on a password-protected website for classroom use. ...
export subsidy
... The rise in price lowers consumer surplus by (a+b). The rise in price raises producer surplus by (a+b+c). The export subsidy costs the government the amount of the subsidy, s, times the amount of exports, X2 shown by (b+c+d). Adding up this impact, we are left with © 2008 Worth Publishers Inte ...
... The rise in price lowers consumer surplus by (a+b). The rise in price raises producer surplus by (a+b+c). The export subsidy costs the government the amount of the subsidy, s, times the amount of exports, X2 shown by (b+c+d). Adding up this impact, we are left with © 2008 Worth Publishers Inte ...
The Price System, Demand and Supply, and Elasticity
... Price Rationing • There is some price that will clear any market. • The price of a rare painting will eliminate excess demand until there is only one bidder willing to buy the single available painting. ...
... Price Rationing • There is some price that will clear any market. • The price of a rare painting will eliminate excess demand until there is only one bidder willing to buy the single available painting. ...
Chapter Eight Effects of a Price Change Effects of a Price Change
... Effects of a Price Change • What happens when a commodity’s price decreases? – Substitution effect: the commodity is relatively cheaper, so consumers substitute it for now relatively more expensive other commodities. ...
... Effects of a Price Change • What happens when a commodity’s price decreases? – Substitution effect: the commodity is relatively cheaper, so consumers substitute it for now relatively more expensive other commodities. ...
Chapter 11
... Price Discrimination The practice of posting a discrete schedule of declining prices for different quantities. Eliminates the information constraint present in first-degree price discrimination. ...
... Price Discrimination The practice of posting a discrete schedule of declining prices for different quantities. Eliminates the information constraint present in first-degree price discrimination. ...
AS/ECON 4070 3.0AF Answers to Midterm Exam October 2005 Q1
... Q1.“The fewer firms that there are in an industry, the more an excise tax will be shifted forward onto consumers”. True, false or uncertain? Explain briefly. A1. The short answer here is “uncertain” : an industry with few firms may actually shift less of the tax forward onto consumers than an indust ...
... Q1.“The fewer firms that there are in an industry, the more an excise tax will be shifted forward onto consumers”. True, false or uncertain? Explain briefly. A1. The short answer here is “uncertain” : an industry with few firms may actually shift less of the tax forward onto consumers than an indust ...
PRINCIPLE OF ECONOMICS
... due to branding and labelling, and there are no barriers to entry and exit. ...
... due to branding and labelling, and there are no barriers to entry and exit. ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑