Define Price

What do you understand by the term Price (P) at Market in Economy?

E

Expert

Verified

Price (P): At a particular moment of time the market price is the dollar amount which will be paid in the market for one unit of product.  Each and every unit sold will be sold at this price despite of which firm sold it, or who buy it.  In real world, the firm’s price in competitive market is established by the market demand and supply for product. All purely competitive firms “takes”, or accepts, the price which is established by the market, or industry, and then selects the quantity it will propose for sale so as to maximize net economic gains or minimize net economic losses. 

   Related Questions in Macroeconomics

  • Q : Interest receipt Why is interest

    Why is interest received classified as revenue receipt? Answer: Interest received is a revenue receipt since it does not build any liability nor it leads to the red

  • Q : Change in stock Why change in stock is

    Why change in stock is considered a portion of final expenditure? Answer: The Unsold stocks left with producers are supposed as purchased by the producers themselve

  • Q : Repayment of loan-Capital expenditure

    Why the repayment of loan is a capital expenditure? Answer: Repayment of loan is taken as a capital expenditure since it diminishes the liabilities of Government.

  • Q : Problem on Imperfect information

    Imperfect information at times causes consumer’s attempts to maximize their contentment to fail since: (i) Prospects are imperfectly realized, and trial-and-error prototypes can lead to mistakes. (ii) Sellers might exploit asymmetric information

  • Q : Total revenue when price modify When

    When total revenue to a firm is unaffected by small price modifications, then demand is: (i) Relatively price elastic. (ii) Relatively price inelastic. (iii) Unitarily price elastic. (iv) Vertical. (v) Horizontal. Can someone help

  • Q : Ideas in which organization is involved

    Ideas in which organization is involved: Talking about the growth of any company. There are basically three type of broad ideas in which management of any organization is involved. These are: 1. Corporate Strategy<

  • Q : Cost of a foreign currency When cost of

    When cost of a foreign currency increases its supply too increases. Elucidate why?

  • Q : Why Exceptional Demand Curve Explain

    Explain with examples the reasons for exceptional demand curve

  • Q : Explain reason why land Land, capital

    Land, capital and labor are all scarce since: (1) advertising mainly over stimulates human wants. (2) once employed they cannot be used again. (3) each productive resource needs a monetary return for its employ. (4) inheritance under a capitalism prot

  • Q : Define the term Supply curve Define the

    Define the term Supply curve.

©TutorsGlobe All rights reserved 2022-2023.