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Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply is upward sloping. If sellers of purple magic markers are taxe
what is basic economic problem
List and describe the determinants of the price elasticity of demand and of supply.
plot the demand schedule and draw the demand curve for the data given for marijuana in the case above
It is necessary for the proper understanding of the price theory to know the various concepts of cost that are often employed. When an entrepreneur undertakes production of a commo
A Competitive Short Run Supply Curve of Firm * Observations: - P = MR - MR = MC - P = MC * Supply is amount of output for every possible price. Thus: - If
What are corrective taxes? Why do economists prefer them to regulations as a way to protect the environment from pollution. Discuss
Normal profit: Normal profit is when total revenue is exactly equal to total cost when the latter includes both explicit costs. It is the type of profit when made by firms in
Using a diagram explain the equilibrium point of a monopoly
Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales
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