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Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve? (Max. 500 words)
Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve? (Max. 500 words)
two drivers johnson and Angela each driver up to a gas station ,before looking at the price each places an order johnson says I'd like 5 liters of gas, angela says I'd like 300 worth of gas ,what is each drivers price elasticity of demand
Ben earns by giving guitar lessons at 20 per hour. If he spends 10 hours planting ornamental plants and buys 100 worth of pots and cuttings, ehat are the opportunity costs? Compute the accounting profit and economic profit if Ben sold the plants at 200.
- Assume that price of good X (Px2) will become P5.00 per unit while B1 and Py1 remain the same. What is the new combination of goods X and Y the consumer should purchase in order to be at equilibrium?
- Suppose the consumer’s budget (B1) is P50.00 and the price per unit of Good X (Px1) is P10.00 and the price per unit of Good Y (Py1) is P5.00. How many units of goods X and Y the consumer should buy in order to be an equilibrium? How many will be the consumer’s total utility from this combination of goods X and Y?
Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve?
A perfectly competitive firm is referred to as a
An increase in supply indicates that
a) more is supplied at higher prices
b) indicates that more is supplied at lower prices
c) indicates that more is supplied at all prices
d) is illustrated by an upward shift of the supply curve
Explain using AS-AD model how the output eventually returns to the natural level in the medium-run, in response to a contractionary monetary policy.
