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Why might a perfectly competitive market firm be willing to run at a loss in the short run?
The assumptions of a PCM firm should be outlined in order to end that the PCM firm is a price-taker - and cannot affect the market, either in terms of output or price. Using the unit cost picture, it should be made clear that ATC = AR is the breakeven level of output, and that the firm will incur losses if the price is below ATC. Though, as long as the firm is covering some of the fixed costs, it might be willing to stay in the market for the SR - as losses will be higher if it leaves the market as all set costs will remain.
Explain the difference between productive and allocative ( economic ) efficiency. Explanation of productive efficiency, e.g. output at AC minimum Define to the effect th
When the reserve requirement changes, which of the following will change in the total banking system? (Answer change or No Change) Transaction Deposits Total Reserves Req
Suppose the price elasticity of demand for used cars is estimated to be 3 what does this mean?
Given the demand and cost data you will have available (see information below), briefly describe the process you would use to determine optimum output and price levels in the devel
A government purchase real GDP. Are increases in government purchases associated with increases in real GDP?Describe the important characteristics of perfect competition and monopo
Define the individual consumer surplus and total producer surplus. Individual consumer: Individual consumer surplus is the net profit to an individual buyer through the purc
THE MODEL BUILDING A model of individual or aggregate economic phenomena represents a simplification of real world economic complexities. It may be expressed in words, ta
Overnight target rates and inflation One of the main targets of every central bank is a low and stable inflation. It's main control variable is the overnight interest rate targ
You are considering three design alternatives for treating a pollutant in wastewater using a first-order process ( k = 1 min -1 ). The total flow is 10 million gallons per day (mg
What are the effects of the fiscal stimulus on the macroeconomy
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