Explain Shut Down Price
Explain the term Shut Down Price? Illustrate it.
Expert
Shut Down Price (PSD): In purely competitive firm it is the price at which it loses exactly similar amount of money as if it shut down totally (that is, losing the value of fixed cost). Any price lesser than this is a price at which the firm is fine off shutting down than operating (that is, it will lose less shutting down than generating where marginal revenue equivalents marginal cost). Any price bigger than this and the firm is fine off operating than shutting down in short run, even when it is making a loss. The shut down price is at minimum point on the average variable cost (AVC) curve, or PSD = minimum AVC.
what are the four factor of economic growth
Describe when there will be a surplus of the good?
Explain in short the income approach to evaluate national income. Answer: Under income method to compute the National Income, the steps given below have been taken into account: A) First of all production units tha
10 US dollars are exchanged for 500 Indian rupees. Calculate the exchange rate for Indian currency? Answer: $1 = 500/10 = Rs.50, that is, $1 = Rs. 50
What are the strength and weakness of using per capital national income? give explained answer for query
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.
Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero? Why or why not should this be the case?
Describe whether the sale of old scooter is comprised in national income?
Read the article on blackboard in the assignments area, John McCallum "Agriculture and economic development in Ontario and Quebec until 1870", Gordon Laxer, ed. Perspectives on Canadian Economic Development: Class, Staples, Gender and Elites (Toronto: Oxford Universit
Definition of shortage: It is a condition in which quantity demanded is more than the quantity supplied. The sellers will respond to the shortage by increasing the price of the good till the market reaches the equi
18,76,764
1948250 Asked
3,689
Active Tutors
1416226
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!