Functions of price mechanism
What are the various functions of price mechanism in a free market economy?
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Price mechanism is the point which equilibrates demand and supply within a market it is a mechanism of pricing the price mechanism is one which can allows the prices of goods and services to be decided by the interplay between demand and supply, there is no centralized price fixing.
The concept of price mechanism is that the free market when left to its own devices, will formulate fair prices of the goods or services on its own by the natural laws of supply and demand.
Whenever the price of plastic moose heads increase from $5 to $7, monthly sales fall from 2000 to 1000 units. By using the arc elasticity formula, the price elasticity of demand will be: (i) 3.0. (ii) 1/3. (iii) 2.0. (iv) 2.5. Q : Marginal revenue at monopolist At the quantity where a demand of monopolist is unitarily elastic, so marginal revenue is: (1) positive. (2) negative. (3) one. (4) zero. (5) infinite. Hey friends please give your opinion for the problem of
At the quantity where a demand of monopolist is unitarily elastic, so marginal revenue is: (1) positive. (2) negative. (3) one. (4) zero. (5) infinite. Hey friends please give your opinion for the problem of
Can someone help me in finding out the right answer from the given options. Net sales revenue of the Rusty Key Corporation for the year 2005 is $190,000. The net explicit costs incurred were $70,000, and net implicit costs were $65,000. The accounting profit is ____ a
Testing Functional structure models: It is often hard to tell whether the functional model structure chosen (which almost always in published work appears to generate consistent and robust results) is the only one tested or not. Q : Economic Rent of Demand Curve When D 0 When D0 is the initial demand curve for land in this illustrated figure, within equilibrium the economic rent realized through the landowner will be: (1) zero. (2) area Ocef. (3) area cae. (4) area Oaef. (5) a pure economic
When D0 is the initial demand curve for land in this illustrated figure, within equilibrium the economic rent realized through the landowner will be: (1) zero. (2) area Ocef. (3) area cae. (4) area Oaef. (5) a pure economic
The consumer who spends income and hence the ratio of MUs of all goods purchased equivalents the ratio of their prices is: (i) Maximizing net utility. (ii) Spending too much. (iii) Beyond the point of diminishing negative utility. (iv) Behaving incompatibly through pu
Most monopolists whom continue to operate in the long run are capable to charge a price as: (w) greater than minimum average total costs [ATC]. (x) less than MR. (y) less than marginal costs [MC]. (z) less than which of a pure competitor along with si
Owners of corporate stock obtain pure economic profit only to the extent which the rates of return realized by owning the stock exceed the: (1) interest rate that would have been produced by other investments entailin
The demand curve that facing a monopolistically competitive firm is: (1) perfectly elastic within the short run. (2) perfectly inelastic due to numerous substitutes for its product. (3) less elastic than the demand curve facing a comp
Total cost can be estimated as area: (i) 0bcq1. (ii) 0adq2. (iii) 0Peq2. (iv) aPed. (v) Cannot be measured in illustrated figure. Discover Q & A Leading Solution Library Avail More Than 1424161 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1959207 Asked 3,689 Active Tutors 1424161 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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