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.
Examples of command economies are: a) the United States and Japan b) Sweden and Norway c) Mexico and Brazil d) Cuba and North Korea
discuss with the help of IS-LM model why money has no effect on output in classical supply case
A change in tax rate changes the IS equation, LM equation remaining the same. Let same, let us suppose that the government raises the tax rate from 20 percent to 25 percent<
If households become more willing to hold less cash and more stocks or bonds, the
Define the term Supply curve.
Macroeconomics is a study of: (1) the economy as an entire or in the aggregate. (2) worldwide economic problems of individual households. (3) interactions among firms and households in one exact market or industry. (4) the rising income inequality wit
Macro Economics: Macro economics studies the economy as an entire.
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?
IN which situation, there is a deficit in the balance of trade.
What is the base of categorizing receipts into revenue and capital receipts?
18,76,764
1949016 Asked
3,689
Active Tutors
1415256
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!