Define break-even price
Break-even price: This is the price at which firms form zero normal profit.
The greater the price elasticity of demand associate to the price elasticity of supply, then the: (i) greater the legal incidence of any tax burden. (ii) smaller the forward shifting of any tax burden. (iii) smaller the backward shift
Assume that no externalities in production or consumption exist and the income distribution is universally viewed such as “fair.” When this firm could price discriminate perfectly, one condition for socially optimal output would be for: (i
Elucidate the Primary functions of money. Answer: Primary functions: 1) Medium of Exc
Difference between collusive and non-collusive oligopoly. Elucidate how oligopoly firms are interdependent in taking price and output decisions.
You obtain an A on your Economics test on Monday and decide to prize yourself with a cookie each and every day for the rest of the week. By Thursday, you do not really care for any more cookies. This best symbolizes the: (1) Law of diminishing returns (2) Income effec
What is the difference between decreasing marginal returns and negative marginal returns?
When the capital-to-labor (K/L) ratio rises, the: (1) productivity of capital tends to increase. (2) profitability of capital investments will raise. (3) average wages paid to labor will probably decrease. (4) average productivity of labor generally i
For environmental quality the demand is income elastic for most people, that implies that prosperity and higher incomes tend to: (w) increase people’s concerns about air, water, and noise pollution. (x) reduce efforts to solve pollution problems
The additional dollar of income would be most probable to mean more to a usual poor individual than to a rich one if: (i) Efforts to raise income are proportional to the value of additional dollar earned. (ii) Each and every individual had similar total utilities from
If demand for good falls due to increase in its own price. Then what is the change in demand termed? Answer: Contraction of demand
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