Define bank rate
Bank rate: This is the rate of interest at which central bank provides loan and advance to commercial banks.
This is possible that consumers could pay a lower price within an oligopoly market than a competitive market since large oligopolists: (w) can price below cost. (x) often give quantity discounts to loyal customers. (y
Price Rigidity: The other significant feature of oligopoly is price rigidity. Price is rigid or sticky at the prevailing level due to the fear of reaction from the rival firms. When an oligo
When the interest rate is 5 percent and a financial investment produces annual payments of $50,000, in that case the present value of this asset is as: (w) $1,000,000. (x) $5,000,000. (y) $500,000. (z) $10,000,000.
When the marginal revenue product of the very last worker hired is more than the marginal resource cost of the worker, then the firm: (1) Is experiencing rising returns to the scale. (2) Can raise its gains by hiring more labor. (3) Is maximizing the profit. (4) Must
Tax: It is a compulsory payment prepared by household and firm to government.
Types of Surveys: Surveys can be classified by their method of data collection. Mail, telephone, and in-person interview surveys are the most common. Extracting data from samples of records is also frequently done.
Long-run supply curve of a purely competitive industry: (w) equals the horizontal summation of all firms’ short-run supply curves. (x) reflects equilibrium outputs after entry and exit respond completely to any shifts in demand. (y) declines as
Cross-elasticity of demand: The receptiveness of demand to modifications in prices of associated goods is termed as cross-elasticity of demand (i.e., associated good
Of the given price elasticities [ed] for market demand curves, there the one which is absolutely implausible by the vantage of standard economic theory would be one for that, across all conceivable ranges of prices: (1) ed= 0 and the
When Firm B in demonstrated graph successfully minimizes losses and maximizes its profits that have: (1) covered overhead while incurring short-run economic losses. (2) potential economic profit of Pbgh per period. (3) total costs equal to 0phq2. (4)
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