Define deficient demand
Deficient demand: If AD < AS at full employment level, then it is defined as deficient demand.
It is not possible for a nondiscriminating, that profit maximizing monopolist to attain equilibrium where MR = MC as well as: (w) economic profit = 0. (x) economic profit is negative. (yz marginal costs are at the minimum of average costs [MC = ATC].
In an economy the MPC is 0.75. Investment expenses in the economy raise by Rs.75 crore. Compute total increase in national income.
Within the short run, there a purely competitive firm will close down its plant(s) and manufacture nothing when: (i) this makes no pure economic profits. (ii) normal profits were unattainable. (iii) P < ATC at all output levels. (iv) accounting pro
Price floor: Price floor refers to the lowest amount price fixed by the government over the market determined price and hence the producers of the necessary items such as wheat, rice and so on might not experience losses.
(a) Suppose the income elasticity of demand for pre-recorded music compact disks is +4 and the income elasticity of demand for a cabinet maker’s work is +0.4. Compare the impact on pre-recorded music compact disks and the cabinet maker’s work of a recession that reduces consumer incomes by 10 per c
Let assume that an auto manufacturer which can produce 10 cars at an average cost of $8000 per car. When the manufacturer enlarges output to 100 cars, then the average cost of production falls to $5000 per car. This firm is experiencing the: (1) Raised demand. (2) Eco
The present value of future income is: (w) higher, the higher the interest rate. (x) lower, the higher the interest rate. (y) unaffected by the interest rate. (z) purely objective, and not subjective at all. Hello guys I want your advice. Please recommend some views for above Economics pr
The firm beneath perfect competition is a price taker by the reasons shown below:A) Number of firms: The number of firms beneath perfect competition is so big that no individual firm by changing sale, can cause an
Data on poverty into the United States recommend that the: (w) sex of the head of the family is unrelated to the poverty rate. (x) race of the head of the family is unrelated to the poverty rate. (y) families headed by African-American or Hispanic wom
The concept that people must have income in proportion to their productivity is termed as the: (1) equality standard of distribution. (2) productivity standard of distribution. (3) needs standard of distribution. (4) utility standard
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