What is Elasticity? - Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price. If a curve is more elastic‚ then small changes in price will cause large changes in quantity consumed. If a curve is less elastic‚ then it will take large changes in price to effect a change in quantity consumed. Graphically‚ elasticity can be represented by the appearance of the supply or demand curve. A more elastic curve will be horizontal‚ and a less elastic curve will
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THE UTILITY CONCEPT THE term utility refers to satisfaction a consumer gets from whatever goods and services he consumes. It will be useful to discuss between two utility concepts: (i) total utility (ii) marginal utility Total utility attained from a commodity refers to the sum total of satisfaction which a consumer receives by consuming the various units of the commodity. The more units he consumes‚ the greater will be his total satisfaction upto a certain point. As he keeps on
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Internal economies of scale -- Savings in cost as firm expands. Created by firms’ own policies and actions. All must link back to lowering AC 1. Technical Economies of scale (Technical and engineering factors) • Factor indivisibility Economies • Make full use of large equipments • Economies arising from increased dimensions • Larger dimensions. Container principle>>Doubling of area more than doubles the volume • linked process economies • Takes a product through several stages of production‚ saves
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BSB & Sky TV slide1: News Corporation would begin broadcasting a satellite TV service to Britain in February 1989. BSB had been working toward the same goal for eighteen months and planning a fall 1989 launch date. Both were (losing Money‚ Gaining Profit). Please Choose One.Why would a frim engage itself in price war? BSB and SKY were both losing money in the price war.Price is a commercial method to beat down competitors in the same industry.One competitor will lower its price first and others
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Chapter Six Businesses and Their Costs Study Questions: 1. Explain the difference between a plant‚ a firm‚ and an industry. Plant – establishments such as a factory‚ farm‚ mine or store. Firm – an organization that employs resources to produce goods/services for profit. Industry – group of firms that produce the same or similar products. 2. State the advantages and disadvantages of the corporate form of business. Advantages – most effective form of
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Economics Unit 8 Unit 8 Nature of markets and Pricing of Products I Structure 8.1 Introduction Objectives 8.2 Meaning of market and market structure 8.3 Kinds of markets 8.4 Perfect competition 8.5 Monopoly 8.6 Monopolistic competition 8.7 Oligopoly 8.8 Duopoly 8.9 Bilateral monopoly 8.10 Monopsony 8.11 Duopsony 8.12 Oligopsony 8.13 Industry analysis 8.14 Summary 8.15 Terminal Questions 8.16 Answer 8.1 Introduction Efficiency of management lies in its capacity to analyze the market. Study
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THIS IS HELPING MY FELLOW PHOENIX. 1. A purely- or perfectly-competitive firm would be characterized by which of the following? Hint : The different types of firms include pure competition‚ pure monopoly‚ monopolistic competition‚ and oligopoly. A. Large number of firms‚ price taker‚ free entry and exit‚ and standardized product B. Large number of firms‚ price maker‚ free entry and exit‚ and a differentiated product C. Small number of firms‚ price maker‚ limited entry and
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Cooperative or Non-Cooperative Behavior of OPEC Is OPEC a classic example of an effective cartel?? What happens to world oil prices when OPEC practices cooperation?? Organization of Petrol Exporting Countries(OPEC) • Inter-governmental organization formed in 1960 by Iraq‚ Iran‚ Kuwait‚ Saudi Arabia and Venezuela • Currently has 12 members including Qatar Socialist People’s Libyan Arab Jamahiriya ‚the United Arab Emirates ‚ Algeria ‚ Nigeria ‚ and Angola . Objectives of OPEC To formulate
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CHIRANJIV BHARATI SCHOOL‚ PALAM VIHAR SESSION 2013-14 WORKSHEET ON INTRODUCTION SUBJECT: ECONOMICS CLASS: XII Previous years (past 3 years) questions 1 Mark Questions Q1: Give meaning of micro economics. Q2: What is opportunity cost? Q3: Define an Economy. Q4 What is market economy? Q5: What is a planned economy? Q6: Give two examples of Micro economic studies. Q7: Define macro economics. Q8 How is production possibility curve affected by unemployment in the economy? Explain. Q9: explain
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Carnival Corporation & PLC: An Economic Analysis Bambi H. Walton Columbia College BUSI 510 Dr. Jeffrey Snider Executive Summary While over the years‚ Carnival has seen tremendous growth‚ in more recent years‚ profitability is decreasing and the fate of the cruise industry rests on the shoulders of Carnival and other cruise lines. In order to grasp this understanding fully‚ this report will look into Carnival’s background and what problems are plaguing not only this company‚ but also others
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