Illustrates the significance of elasticity
Illustrates the significance of elasticity?
Expert
Significance of Elasticity is explained here with some important points:
The perception of elasticity of demand is more of practical importance:
1. Production: Producers usually decide their production level on the origin of demand for their product. Therefore elasticity of demand helps to fix the level of output.
2. Price fixation: Each seller under monopoly and imperfect competition has to take in account the elasticity of demand whereas fixing their price. When the demand for the product is inelastic then he can fix a higher price.
3. Distribution: Elasticity assists in the determination of rewards for factors of production. For illustration, when the demand for labour is inelastic, trade union can increase wages.
4. International trade: This perception helps in determining the terms of trade among two countries. Terms of trade, means rate at that domestic commodity is exchanged for foreign commodities.
5. Public finance: It assists the government in formulating tax policies. To impose tax on a commodity, the government must take in consideration the demand elasticity.
6. Nationalization: Elasticity of demand assists the government to decide regarding nationalization of industries.
7. Price discrimination: A manufacture can fix a higher price for the product that have inelastic demand and lower price for product that have elastic demand.
8. Others: The notion elasticity of demand also assisting in taking other vital decision for example: finding out the price of joint product and take over decision.
If all else regarding two occupations are relatively equal, then wages tend to be lower for jobs which: (1) require important education and training. (2) expose the worker to bad weather. (3) require extended periods away from home. (4) pose health and safety hazards
Illustrates the terms total cost, average cost and also marginal cost?
Define naive method and its techniques briefly.
Describe briefly Cost Volume-Profit relationship?
Illustrates the Modern Definition?
When all markets wherein a firm operates are purely competitive, in equilibrium the marginal resource cost of labor is the same to the: (w) firm’s marginal revenue. (x) marginal cost of output. (y) wage rate the firm must pay to hire more worker
Explain the aspects of operational or internal issues.
Illustrates the opinion of Samuelson for explaining Law of Demand?
Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.
A decline within consumer demand for a good tends to reduce demands for: (w) inferior goods. (x) alternative products. (y) resources producing the good. (z) union wage increases. Hey friends please give your opinio
18,76,764
1938870 Asked
3,689
Active Tutors
1447164
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!