Economics is the social science that deals with the production‚ distribution‚ and consumption of goods and services and with the theory and management of economies or economic systems. All economists agree on one thing‚ the economy is large and it is unpredictable. However‚ throughout the years economists have developed some simple but widely applicable principles that are useful when trying to understand decisions that are made by everyday people to the workings of highly complex markets. There
Premium Economics Supply and demand Costs
Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
Premium Microeconomics Economics Costs
Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed. 1. How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain. The market demand curve will slope downwards‚ while the demand curve for the individual firm is flat or perfectly elastic‚ reflecting the fact that the individual takes the market price as given. The difference in the slopes of the market demand
Premium Economics Supply and demand Monopoly
Marginal Revenue: Marginal Revenue can be termed as the change in the total revenue from an additional unit that is sold by a firm. Example‚ the total revenue when 10 units are sold is $50‚ and total revenue when 11 units are sold is $55. Marginal Revenue in this case will be (55-50)/(11-10) = $5. One can compute the total revenue if the marginal revue and the number of units sold. If the marginal revenue of a product is zero than the total revenue will not change with an increase in the number
Premium Economics Profit maximization Marginal cost
Supply‚ Demand and Price Elasticity People and companies make economic decisions on a daily basis by deciding how much of something they will buy and what prices they are willing to pay for the goods or services. Through individual decision-making‚ consumers determine supply demands for their needs and wants‚ and companies decide which goods and how many goods are to be sold‚ and how much to charge consumers. There are many fundamental concepts and definitions that are important to understanding
Premium Supply and demand Economics Consumer theory
Week two of class has been dedicated to discuss and explain how supply and demand determines the price and quantity of goods and services within a competitive market structure; examine how normal‚ inferior‚ substitutes and complement goods affects the supply and demand structure; and explain how and why surplus and shortages can occur with various goods and services. There are two parts for this assignment that covers material in chapter four. Part one asks the following: Many industries have gradually
Premium Supply and demand Microeconomics
ECO 561 Economics March 12‚ 2012 Abstract The following paper discusses a business proposal on hair extensions. The proposal will include profit maximization strategy‚ how to increase revenue‚ entry into the market. The proposal will also look at product differentiation and the mix of pricing and non-pricing strategies to increase revenue as well as pricing and non-pricing strategies for hair extensions under the current business cycle in the United
Premium Economics Marketing Microeconomics
Week I Quiz Results/Answers ECO561 1. Revenue increases when * producer surplus increases 2. An increase in the price of an inelastic good * increases revenues 3. Price elasticity of Demand increases when * people become less price sensitive over time 4. The purpose of a market in a market system is to * bring buyers and sellers into contact 5. By specializing in the production of one good‚ a company is able to benefit from economies of scale which increases its revenue. Which
Premium Costs Economics Marginal cost
Chapter 10 (Tentative Due Date: by November 1) Question 2: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers‚ if any‚ do you feel give rise to monopoly that is socially justifiable? LO1 The major barriers to entry in an industry are economies of scale‚ legal barriers such as patents & licenses and other strategic or pricing barriers. Economies of scale occur only in large firms who are able to reach a minimum
Premium Monopoly Microeconomics Economics
The concentrating distribution of the enterprise The producing enterprise of jaw crusher industry in China mostly gradually derive from the early enterprises of the industry‚ the geographical location is relatively centered and the personnel structure exists serious defect. So far‚ the enterprise is mainly distributed in the Jiangsu‚ Zhejiang‚ Shanghai‚ Liaoning‚ Heilongjiang‚ the enterprise of this several area businesses is accounted for almost 50% of the total number of entire industry‚ what
Premium Supply and demand Microeconomics