What is Complements
Complements: The two goods for which a rise in the price of one good leads to a reduction in the demand for other.
An increase in the income of consumer X leads to a fall/down in the demand for that good by the consumer. What is good X termed? Answer: Normal good
When households become increasingly willing to defer current consumption in order that they can enjoy greater future consumption, in that case the: (1) interest rate rises. (2) equilibrium investment level rises. (3) present value of
When a purely competitive industry is into long run equilibrium, in that case a typical firm can: (w) earn normal accounting profit although only zero economic profit. (x) incur economic losses when these are offset by accounting prof
What is Average Fixed Cost. Also provide its formula?
The Implicit costs are: (i) The opportunity costs of resources contributed by the firm’s owner. (ii) Costs that need a cash outlay. (iii) Usually comprised in the computation of accounting profit. (iv) Fictional costs which do not influence the
All profit maximizing firms which are not shut down since demand never exceeds average variable costs will make where marginal revenue as: (w) excludes average revenue. (x) equals average variable cost. (y) equals mar
How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?
I have a problem in economics on Labor union monopoly. Please help me in the following question. As compared to pure competition, beneath a pure labor union monopoly, the wage will tend to: (1) Higher and employment will also be higher. (2) Lower and
Suppose that all these curves are infinitely long straight lines. There supply curve which is relatively (although not perfectly) price elastic for all quantities and prices is: (1) supply curve S1. (2) supply curve S2. (3) suppl
To drive rivals by a market but ignore losses incurred by predatory pricing, a firm could: (w) cut price below costs but continue to sell similar amount of output. (x) set price equal to average costs, removing incentives for other firms to reenter th
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