Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
When Rose Garden Wholesalers has a typical type cost structure of rose farms within this purely competitive industry, into the long run new competitors would most likely enter the market providing the wholesale price
What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib
When most firms in a competitive industry experience economic profits, in that case long run competitive pressures tend to cause: (w) greater economic profits. (x) prices to decrease as firms enter the industry. (y) industry output to fall. (z) severa
Select the right answer of the question. A competitive market will: A) achieve an equilibrium price. B) produce shortages. C) produce surpluses. D) create disorder.
This needs to be identified that general abandonment of supposition of perfect competition, universal adoption of supposition of monopoly, need to have extremely destructive consequences for economic theory.”
Marginal revenue, which is: (w) the change in total revenue from selling an additional unit of output. (x) the change in total revenue from hiring an additional unit of labor. (y) computed as TR/Q. (z) specified by change in Q / change in TR.
Inferior goods in economics: Inferior goods refer to such goods whose demand reduces with the rise in income of consumer.
A firm may temporarily lower prices as well as earn negative profits in trying to: (w) drive rivals out of business. (x) find rivals to lower prices. (y) maximize current profit. (z) A rational firm would not do this. Q : Define consumption function Consumption Consumption function: The relationship among income and consumption is termed as consumption function.
Consumption function: The relationship among income and consumption is termed as consumption function.
Normal good: It is a good for which, other things equivalent, a rise in income leads to a rise in demand.
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