• microeconomics
    because they know that if they dent buy more now, they will have to pay much higher prices in future. The existence of such goods and factors explain why under exceptional case the demand curve may be positively sloped as below. 10 Price of commodity Quantity demanded Demand Curve for...
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  • Chapter 1
    . What is the opportunity cost of working 10 hours a week flipping burgers while in college? If you worked more hours per week, would you experience increasing or constant opportunity cost? That is, would the extra hours require giving up alternative uses of your time that have the same value or an...
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  • Macroeconomics
    classical 2 Labour supply is positively sloped also because it is assumed that we have the absence of an income effect, namely the tendency of highincome workers to reduce labour supply when their wage increases. 36 Chapter 3: Unemployment and the AD–AS model unemployment: minimum-wage...
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  • Principles of Economics
    firm picks the amount they are willing to sell; if the price is increased buyers will fall off. 4.  Discuss why some long-run average cost curves are steeper on the downward side than others. Discuss fully.  “Long-run average cost equals the long-run cost divided by the quantity produced...
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  • Final Exam
    . | | 2. Rising per capita income in the United States would probably result in a decrease in: (a) the number of yachts sold. (b) the demand for used tires. (c) the supply of...
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  • Economics
    marginal revenue Cost curves can be combined to provide information about firms. In this diagram for example, firms are assumed to be in a perfectly competitivemarket. In a perfectly competitive market the price that firms are faced with would be the price at which the marginal cost curve cuts the average...
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  • Course Guide
    Are the following statements true or false? Explain your answers in detail. 1. "Generally speaking the aggregate supply schedule is said to be positively sloped because of the same reasons a firms supply curve is positively sloped". 2. "A short run aggregate supply curve can be derived by...
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  • Home Work
    passes through the point P= Rs.25 and Qs=500. Give two interpretations of this point on the supply curve. 7 In 2003, the Men`s Hair company increased the price of its shampoo and subsequently sold more shampoo than 2002. Is the demand curve for this company positively sloped? When the demand...
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  • Chapter Notes
    specific brand of industry’s differentiated product. Elastic curve due to close substitutes 2) firms have access to same technological knowledge 3) industry contains many firms and each ignores possible reactions of competitors 4) freedom of entry and exit within the industry Predictions of the...
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  • Urban Economics
    transport the finished product(at the very least it would be more expensive than transporting the raw materials), locating next to markets reduces transportation costs and minimizes the costs to the firm. 4) A) Have to visualize it. B) The household would prefer to live close the CBD but any...
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  • Econ 208
    of the boundary The shape of the curve is dependent on each factor of production because each factor is not equally useful in producing all goods Example: Opportunity Cost of Your University Degree Bachelor’s degree: Out of pocket mondy: fees and books and materials 4 years* (7,500)= 30,000...
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  • E-Book Microeconomics David Besanko
    expensive than basket 1. Otherwise, he would have chosen basket 1 at the new prices. Equation (4.8) states that basket 2 costs no more than basket 1 at the new prices. Px x2 Py y2 Px x1 Py y1 (4.8) Why must equation (4.8) be satisfied if the consumer’s choices are consistent with utility...
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  • Research Paper on Land Administration
    demand curve Specialization & division of labor Increasing marginal cost Public goods 12. "The compact disk player has literally revolutionized the recording industry with its state-of-the-art sound, clarity, durability, and the fact that it costs less than cassette tape players." Assuming that...
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  • Research
    minimized. MES is at the minimum point on a U-shaped long-run average cost curve (output Q = 4 in Figure 2 bottom panel) and at the corner of an L-shaped long-run average cost curve. Generally speaking, competition is vigorous when MES is low relative to total industry demand. This fact follows from the...
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  • econ pass paper
    labour supply curve. Under what conditions will this become negatively sloped? 2. Evaluate the widely expressed view that the imposition of a minimum wage inevitably results in a reduction of employment. 3. Critically appraise the view that Britain should not join the EMU. 4. Describe, with...
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  • By definition, the likelihood that a given outcome will occur is called
    Answer: The quantities of two goods. Incorrect. The income-consumption curve traces the utility-maximizing combinations of two goods as a consumer's income changes. 6. Incorrect If food is an inferior good, then Your Answer: its demand curve will be positively sloped. Correct Answer...
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  • Student
    , mainly because of increasing opportunity cost. 1.3 reSource allocatIon 22 Grade 11 Economics Activity 1.3 Perform these tasks: 1 2 Construct a PPC that shows your grades (marks) in economics and in maths so far this year. Calculate the opportunity cost of your grades for the two subjects...
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  • Econ Summary
    reduce cost of production. 2. Input Prices - changes in the price of variable inputs can cause large and quick shifts in the supply curve. Changes in fixed input prices would not affect the profit-maximizing level of output since increases in fixed costs don’t increase marginal cost, and thus has no...
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  • Business Plan
    10, the increase in demand for inputs causes the price of those inputs to rise. That’s why the ATC curve shifts upward, and that’s why the long-run supply curve slopes upward. This type of industry— which is the most common—is called an increasing cost industry. But there are two other (less common...
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  • Paper
    . What is meant by consumer’s equilibrium? State its condition in case of two commodities. Q36. Why is indifference curve convex to origin? Explain. Q37. How many units of a commodity should a consumer buy to get maximum utility? Explain with the help of a numerical example. >Demand Q38...
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