Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
Marginal revenue: This refers to the addition prepared to the total revenue.
Whenever the marginal utility of a good becomes negative or zero: (i) Goods are transformed to the bads. (ii) Net utility reaches the maximum and then declines. (iii) The maximum total advantages have been squeezed from good. (iv) People are unwilling
Let’s take a perfectly competitive market in which the market demand curve is provided by Qd = 20 − 2Pd and the market supply curve is provided by Qs = 2Ps. a) Determine the e
Price elasticity of demand: The Price elasticity of demand refers to the degree of responsiveness of the quantity demanded to modifications in price. Ed = (ΔQ/Δ P) x (P/Q)
Refer to the following data. Equilibrium price will be: A) $4. B) $3. C) $2. D) $1. Give the answer of above questaion
When Joe Glutton’s final bite of a burger yielded no profit in total utility, then Joe: (i) Don’t like hamburgers. (ii) Has reached the minimum utility from eating the burgers. (iii) Has reached the point where marginal utility of hamburgers is 0 (zero). (
Let assume that an auto manufacturer which can produce 10 cars at an average cost of $8000 per car. When the manufacturer enlarges output to 100 cars, then the average cost of production falls to $5000 per car. This firm is experiencing the: (1) Raised demand. (2) Eco
From the viewpoints of auto makers, the weakening of OPEC oil cartel in the year 1990s resulted in a/an: (1) Rise in demand for cars. (2) Reduction in demand for cars. (3) Rise in the supply of cars. (4) Reduction in supply of cars. Q : Nonrivalry and nonexcludability Select Select the right ans wer of the question.Nonrivalry and nonexcludability are the main characteristics of: A) capital goods. B) private goods. C) public goods. D) consumption goods.
Select the right ans wer of the question.Nonrivalry and nonexcludability are the main characteristics of: A) capital goods. B) private goods. C) public goods. D) consumption goods.
Describe the implication of perfect knowledge regarding market beneath perfect competition.
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