What determines the variety of styles designs and sizes of
What determines the variety of styles, designs, and sizes of different products? Why do you think there are only a few different varieties of toothpicks but lots of different types of napkins on the market?
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In a price-taker market, if a business operator produces efficiently-that is, if the cost of producing the good is minimized-the operator will be able to make at least a normal profit
When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business
Why does the short-run market supply curve for a product slope upward to the right? Why does the long-run market supply curve generally slope upward to the right?
Will firms in a price-taker market be able to earn profits in the long run? Why or why not? What determines profitability? Discuss.
Barriers to entry are crucial to the existence of long-run profits, but they cannot guarantee the existence of profits
The demand for resources is a derived demand.” What is meant by that statement? Why is the employment of a resource inversely related to its price?
Why are real wages in the United States higher than in other countries? Is the labor force itself responsible for the higher wages of American workers? Explain.
The earnings of engineers, doctors, and lawyers are high because lots of education is necessary to practice in these fields
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