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If a firm faces a perfectly elastic demand curve for its products, then
A perfectly competitive firm is in equilibrium where Margaret cost is equal to marginal revenue because:
A. This is where the optimum factor combination occurs.
B. It is not possible to expand production in this short run.
C. At this point, average cost ,is always at its lowest.
D. No other quantitu yeilds higher profit.
Please help me with the answer
factors which influences determination of prices under monopoly
An empirical study tested for the Ricardian equivalence theorem by estimating the following equation:
�At = a0 + a1�Bt + μt
where A is the public’s net real financial assets (excluding its holdings of government bonds), B is real public debt and μ is a random term. Does aˆ1 = 1 confirm the Ricardian equivalence theorem? US aggregate time series tend to yield aˆ1 = 0. What would this imply for the validity of the Ricardian equivalence theorem?
Formulate and specify at least one other estimation equation for testing the Ricardian equivalence theorem.
The Cobb-Douglas function for a new product is given by:
N (L,K) = 1.19L0.72K0.18
Where C* =Rs. 750, w = Rs. 30, r = Rs. 40
Determine the amount of labor and capital that the firm should use in order to maximize output. What is this level of output? Also interpret the value of Lagrange multiplier, λ.
Each of the following is a condition necessary for the existence of monopolist competition except?
A)fairly large number(25-75) buyers and sellers of the product must exist. B) firms must be able to enter exit an industry with relatively ease.C)firms must offer identical products for sale.D)buyers must be well informed about Differentiated products.
Give real world examples of each market structure and relate (for instance if you state that Microsoft is an example of Monopoly , you have to relate and justify on that why it belongs to a specific market structure )
In china and United States women labor force participation rose dramatically over the period of 1980, do you think this dramatic rise affects income of the country? How? Support your argument with facts and figures?
a price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? explain
