Define break-even price
Break-even price: This is the price at which firms form zero normal profit.
Central bank executes the function of a clearing house. Explain how? Answer: Each and every bank keeps cash reserves with central bank. The claims of banks against
Tell answer of this question.Refer to the following data for a nondiscriminating monopolist. At its profit-maximizing output, this firm will be operating in the: 1) perfectly elastic portion of its demand curve. 2) perfectly inelastic portion of its demand curve. 3)
When a firm’s total revenue potentially exceeds total variable cost for at least one output level, in that case economic losses are minimized or profit is maximized through producing where: (i) average total cos
Unless this chooses to shut down since demand never exceeds average variable costs, in that case a profit-maximizing monopolist makes output where: (i) marginal revenue equals marginal costs [MR = MC]. (ii) marginal revenue minus marg
Calendar Anomaly: Calendar anomalies can be defined as any irregularity or consistent pattern occurring at a regular interval or at a specific time in calendar year. Presence of these anomalies in a calendar year is the biggest threat to the concept o
The purely competitive firm in an output market which hires from a purely competitive labor market will use labor at the point where VMP = W as the firm: (i) Operates in the society's best interest. (ii) Wants to be pretty fair to workers. (iii) Is eg
The Firms which have at least some monopsony power will never: (i) Practice wage discrimination. (ii) Find out wage rates in portion by the number of workers it hires. (iii) Pay higher wages than would a firm hiring from the competitive labor market. (iv) Raise the em
Suppose that the price of peanut packets increases by 5 %, the quantity supplied of peanut increases by 8 %. Then what is the elasticity of supply? Answer: Es = Per
At the price P1, the given figure of purely competitive cranberry industry is within: (w) long-run equilibrium. (x) short-run equilibrium. (y) market period disequilibrium. (z) short-run disequilibrium. <
why is marginal revenue product=marginal resource cost a formula for profit maximization?
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