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.
use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?
What is the alternative name of value added technique of estimating national income? The alternative name of value added technique of estimating national income is production method.
Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average
Hello guys I need your advice. Please advise your view for following economics problems. Microeconomic goals consist of: (w) full employment. (x) efficient allotments of resources. (y) price level stability. (z) ec
Can someone help me in finding out the right answer from the given options. In accord with the theories of Thorstein Veblen, the positional goods from which the owner or user of the good derives the jollies mainly since of the power, class and status signaled by the p
Definition of surplus: It is a condition in which quantity supplied is more than quantity demanded. To remove the surplus, producers will minimize the price till the market reaches to equilibrium.
Adam Smith disputed that a nation’s wealth is, not the gold it possesses, but instead its: (1) Total population. (2) Capability to offer goods for its people. (3) Domestic financial capital. (4) Foreign investments. (5) Military might.
Question: What can we learn from the Japanese experience? Is the US headed for a 'lost decade? Answer: There was a similari
What are the Steps to analyze modifications in equilibrium?
The basic determinant of the transactions demand for money is the
18,76,764
1939405 Asked
3,689
Active Tutors
1437554
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!