Elasticity of market supply, Microeconomics

Assignment Help:

Elasticity of Market Supply

680_elasticity of market supply.png

• Perfectly inelastic short run supply arises when industry's plant and equipment are so fully utilized that new plants should be built to achieve greater output.

  • Perfectly elastic short run supply arises when the marginal costs(MC) are constant.

The World Copper Industry (in the year 1999)

1122_elasticity of market supply1.png

The Short Run World Supply of Copper

760_elasticity of market supply2.png

Producer Surplus in the Short Run

- Firms earn surplus on all but last unit of output.

- The producer surplus is sum over all the units produced of difference between market price of the good and marginal cost (MC) of production.

2246_producer surplus.png

* Producer Surplus in Short Run

1229_producer surplus2.png

*  Observation

- Short run with the positive fixed cost

1972_producer surplus3.png

Producer Surplus for the Market

347_producer surplus1.png


Related Discussions:- Elasticity of market supply

Illustrate the term less developed and developed countries, How might one m...

How might one measure differences in living standards between less developed and developed countries?  This is a very wide question where any clear and relevant calculate shoul

Determine the action keep the price above market equilibrium, What actions ...

What actions could a government take in order to keep the price above market equilibrium? There are four basic possibilities here; 1) Minimum price;  2) A tax on the good

Garrisons capital-based macroeconomics, Consider an economy with high innov...

Consider an economy with high innovative potential, but where saving is insufficient to fund innovative investments. Use Garrison's capital-based macroeconomics to explain how more

Production theory, why does gap between the ATC curve and the AVC curve dec...

why does gap between the ATC curve and the AVC curve decreases as the level of output increases

Compute the after-tax cost of debenture, A 5-years Rs.100 debenture of a fi...

A 5-years Rs.100 debenture of a firm can be sold for a net price of Rs. 96.50. The coupon rate of interest is 14 per cent per annum, and the debenture will be redeemed at 5 per cen

Graph, americana is a small country that produces and consumes jelly beans....

americana is a small country that produces and consumes jelly beans. The world price of jelly beans is $1 per bag, americana''s demand and supply for jelly beans are governed by th

Positive versus normative economics, Positive versus Normative Economics ...

Positive versus Normative Economics Positive Economics Positive economics considers with the predictions or observations of the particulars of economic life. For instance:

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd