Profit Maximization Profit Maximization Profit
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
import
... 7. When the domestic country imposes an export subsidy, the terms of trade decreases and the welfare of the country decreases. 8. Generally, a domestic import tariff increases income for domestic import-competing producers and shifts resources away from the export sector. 9. Generally, a domestic ex ...
... 7. When the domestic country imposes an export subsidy, the terms of trade decreases and the welfare of the country decreases. 8. Generally, a domestic import tariff increases income for domestic import-competing producers and shifts resources away from the export sector. 9. Generally, a domestic ex ...
Perfect competition
... Changes in Demand and Supply as Technology Advances (8 of 15) • A decrease in demand has the opposite effects to those just described and shown in Figure 12.10. • A decrease in demand shifts the demand curve leftward. • The price falls and the quantity decreases. • Firms incur economic losses. • Ec ...
... Changes in Demand and Supply as Technology Advances (8 of 15) • A decrease in demand has the opposite effects to those just described and shown in Figure 12.10. • A decrease in demand shifts the demand curve leftward. • The price falls and the quantity decreases. • Firms incur economic losses. • Ec ...
T - 國立嘉義大學
... Note that in LP’s 10.11 and 10.12, where production points are compared to technologies from different time periods, the parameter need not be greater than or equal to one, as it must be when calculating Farrell output-orientated technical efficiencies. The data point could lie above the feasible ...
... Note that in LP’s 10.11 and 10.12, where production points are compared to technologies from different time periods, the parameter need not be greater than or equal to one, as it must be when calculating Farrell output-orientated technical efficiencies. The data point could lie above the feasible ...
Trade Liberalization and Productivity Growth
... Major conclusion: in most cases trade liberalization have positive effect on overall productivity of domestic firms, although the least productive firms may have to close. Reasons for positive effect: • Incentives to restructure – competition effect • Grater information exchange – demonstration effe ...
... Major conclusion: in most cases trade liberalization have positive effect on overall productivity of domestic firms, although the least productive firms may have to close. Reasons for positive effect: • Incentives to restructure – competition effect • Grater information exchange – demonstration effe ...
Brander–Spencer model
The Brander–Spencer model is an economic model in international trade originally developed by James Brander and Barbara Spencer in the early 1980s. The model illustrates a situation where, under certain assumptions, a government can subsidize domestic firms to help them in their competition against foreign producers and in doing so enhances national welfare. This conclusion stands in contrast to results from most international trade models, in which government non-interference is socially optimal.The basic model is a variation on the Stackelberg–Cournot ""leader and follower"" duopoly game. Alternatively, the model can be portrayed in game theoretic terms as initially a game with multiple Nash equilibria, with government having the capability of affecting the payoffs to switch to a game with just one equilibrium. Although it is possible for the national government to increase a country's welfare in the model through export subsidies, the policy is of beggar thy neighbor type. This also means that if all governments simultaneously attempt to follow the policy prescription of the model, all countries would wind up worse off.The model was part of the ""New Trade Theory"" that was developed in the late 1970s and early 1980s, which incorporated then recent developments from literature on industrial organization into theories of international trade. In particular, like in many other New Trade Theory models, economies of scale (in this case, in the form of fixed entry costs) play an important role in the Brander–Spencer model.