Define consumption function
Consumption function: The relationship among income and consumption is termed as consumption function.
All output markets which are less than purely competitive are characterized through: (1) domination of the market by some large firms. (2) individual firms that are very small to affect their prices. (3) freedom of entry and exit in the long run. (4)
When a monopolist which does not price discriminate raises its output, the firm’s total revenue: (w) should rise. (x) will rise when demand is elastic. (y) will rise when demand is inelastic. (z) will rise when marginal revenue = 0.
Inside the United States, public utilities like natural gas lines or electric companies are frequently: (w) quite competitive while they vie for the consumer's dollars. (x) natural monopolies which are closely regulated by government. (y) seldom closely regulated thro
Change in quantity demanded: When change in demand takes place due to price alone, it is termed as change in quantity demanded.
The demand for textbooks has transferred from D0 to D1 whereas supply changed from S0 to S1. Such shifts make sure that the market equilibrium: (w) price will increase. (x) price will fall.
The teleporter market would show a surplus when: (1) teleporter buttons were priced at P3. (2) Q2 teleporter buttons were produced and sold at a price of P2. (3) teleporter buttons were priced at P2. (4) Q
Marginal rate of transformation: This is the amount of one good which should be given to generate one additional unit of a second good. This is also termed as marginal opportunity cost.
A firm which practices predatory pricing as: (w) tends to incur short-run losses greater than its rival. (x) lowers its price to drive out its rival and then keeps the price low to discourage extra entry. (y) will sell similar amount of output as when
The merely fast food restaurant conveniently located close to a fast-growing suburb may be rather profitable despite sloppy management and poor quality control. There market power can enable several firms along with excessively high production
Contestable markets and purely competitive markets share the feature of: (w) collusive behavior of huge firms. (x) freedom of entry and exit into the long run. (y) widespread product differentiation. (z) persistent economic profits. Discover Q & A Leading Solution Library Avail More Than 1437863 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1933881 Asked 3,689 Active Tutors 1437863 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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