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We can analyse the equilibrium of a firm under Perfect Competition in both the long run as well as in the short-run.
SHORT RUN EQUILIBRIUM OF A FIRM UNDER PERFECT COMPETITION
Under short period, firm can face four different situations depending on whether:
• AR< AC < AVC Shut down point
For some time, two firms have charged $0.90 per standard unit of crating materials for shipping a particular type of machine tool and each has been selling about 20,000 units per m
In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits. If neither of you advertises, your rival will make RM4 million and you w
Can identity economics explain some patterns observed in the Australian economy
Q. Show the method of production? A process or method of production is a combination of inputs essential for the production of output. A method of production is technically eff
Q. Simon satisfying behaviour model? The behavioural approach as developed in particular by Richard Cyert and James G. March of the Carnegie School, lays emphasis on explaining
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THE BALANCING ITEM Since for ever position entry in the current and capital accounts there is a corresponding negative entry in the monetary account, and for every negative en
with the of evidence comprehensively discuss the market structure in the south African mobile telecommunications industry
elasticity concepts occupies a central place in policy formulation explain in details
Arguments against Monopoly However monopolies have been accused of the following weaknesses. Diseconomies of scale While the monopolistic firm ca
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