Econ - Ch 4-6 PP no bkgd
... Fixed Costs A cost that does not change no matter how much of a good is produced. - cost of the building, machinery, rent, property taxes Variable Costs Costs that rise or fall depending on the quantity produced - the cost of raw materials, labor, electricity ...
... Fixed Costs A cost that does not change no matter how much of a good is produced. - cost of the building, machinery, rent, property taxes Variable Costs Costs that rise or fall depending on the quantity produced - the cost of raw materials, labor, electricity ...
Markets, Organizations and Corporate Strategy
... under the control of the decision-maker Success is determined by the economic environment within which the firm operates Strategies must be consistent with the environment law of demand size and profitability of price-matching is it reasonable to match a small competitor’s price cut? ...
... under the control of the decision-maker Success is determined by the economic environment within which the firm operates Strategies must be consistent with the environment law of demand size and profitability of price-matching is it reasonable to match a small competitor’s price cut? ...
Market Demand
... So even if each consumer only demands one unit at most of given good (e.g., a washing machine), extensive margin will still mean that market demand will be smooth and downward sloping. ...
... So even if each consumer only demands one unit at most of given good (e.g., a washing machine), extensive margin will still mean that market demand will be smooth and downward sloping. ...
Price Elasticity of Demand
... • If the elasticity ratio is less than 1, the demand for the good is considered inelastic. • If the elasticity ratio is greater than 1, the demand for the good is elastic. • Unitary elasticity is when the elasticity ratio is approximately 1 (which means the percentage change in quantity demanded is ...
... • If the elasticity ratio is less than 1, the demand for the good is considered inelastic. • If the elasticity ratio is greater than 1, the demand for the good is elastic. • Unitary elasticity is when the elasticity ratio is approximately 1 (which means the percentage change in quantity demanded is ...
Document
... adjusting output; profits are defined as the difference between total costs and total revenue. B. Three questions must be answered. 1. Should the firm produce? 2. If so, how much? 3. What will be the profit or loss? C. An example of the total-revenue—total-cost approach is shown in Table 23-3. Note ...
... adjusting output; profits are defined as the difference between total costs and total revenue. B. Three questions must be answered. 1. Should the firm produce? 2. If so, how much? 3. What will be the profit or loss? C. An example of the total-revenue—total-cost approach is shown in Table 23-3. Note ...
Demand, Supply, and Market Equilibrium
... • The consumer’s preferences or tastes and advertising that may influence preferences ...
... • The consumer’s preferences or tastes and advertising that may influence preferences ...
Economics 310
... Pm and qm are the unregulated price and output. Pa and qa are the average cost price and output and Pc and qc are the marginal cost price and output. 5. The advantage of the unregulated price and output is that is does not cost the government anything to maintain and the firm has an incentive to see ...
... Pm and qm are the unregulated price and output. Pa and qa are the average cost price and output and Pc and qc are the marginal cost price and output. 5. The advantage of the unregulated price and output is that is does not cost the government anything to maintain and the firm has an incentive to see ...
supply curve
... A veterinarian typically specializes in one type of practice or the other, and that decision often depends on the going price for the service. America’s growing pet population, combined with the increased willingness of doting owners to spend money on their companions’ care, has driven up the pr ...
... A veterinarian typically specializes in one type of practice or the other, and that decision often depends on the going price for the service. America’s growing pet population, combined with the increased willingness of doting owners to spend money on their companions’ care, has driven up the pr ...
Ch. 7 Market Structures
... Two forms of Collusion 1. Price-fixing-an agreement to set a price that is often above market price 2. Dividing the market for guaranteed sales -price wars-Pushing prices lower than the cost of production (short run) Final prices are likely to be higher than under MonComps and much higher under Per ...
... Two forms of Collusion 1. Price-fixing-an agreement to set a price that is often above market price 2. Dividing the market for guaranteed sales -price wars-Pushing prices lower than the cost of production (short run) Final prices are likely to be higher than under MonComps and much higher under Per ...
204KB - NZQA
... equilibrium price (Pe). As a result, the milk consumers will bid up the prices in order to buy the limited milk. With 2-litre bottles of milk being more expensive, the quantity demanded will fall and the quantity supplied will rise. This results in an increase in the price of milk from Pe to P1 and ...
... equilibrium price (Pe). As a result, the milk consumers will bid up the prices in order to buy the limited milk. With 2-litre bottles of milk being more expensive, the quantity demanded will fall and the quantity supplied will rise. This results in an increase in the price of milk from Pe to P1 and ...
NCEA Level 1 Economics (90986) 2014
... equilibrium price (Pe). As a result, the milk consumers will bid up the prices in order to buy the limited milk. With 2-litre bottles of milk being more expensive, the quantity demanded will fall and the quantity supplied will rise. This results in an increase in the price of milk from Pe to P1 and ...
... equilibrium price (Pe). As a result, the milk consumers will bid up the prices in order to buy the limited milk. With 2-litre bottles of milk being more expensive, the quantity demanded will fall and the quantity supplied will rise. This results in an increase in the price of milk from Pe to P1 and ...
Demand - cda college
... Consumer demand theory postulates that the quantity demanded of a commodity per time period increases with a reduction in its price, with an increase in the consumer’s income, with an increase in the price of substitute commodities and a reduction in the price of complementary commodities, and with ...
... Consumer demand theory postulates that the quantity demanded of a commodity per time period increases with a reduction in its price, with an increase in the consumer’s income, with an increase in the price of substitute commodities and a reduction in the price of complementary commodities, and with ...
The Intrinsic Value Paradox: Are Diamonds and Water Like Lawyers
... which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce any thing; scarce any thing can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other g ...
... which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce any thing; scarce any thing can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other g ...
The Demand Schedule
... The difference between a market demand curve and an individual demand curve is that the market demand curve ...
... The difference between a market demand curve and an individual demand curve is that the market demand curve ...
DEMAND Objective – Describe the determinants of demand through
... • If a substitute price increases, the good’s demand increases (direct relationship) ...
... • If a substitute price increases, the good’s demand increases (direct relationship) ...
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.↑