Indifference Curve - An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Definition: An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility. Description: Graphically‚ the indifference curve is drawn as a
Premium Consumer theory Euclidean geometry Analytic geometry
NS 10.5 (pg 1 of 2) Heating and Cooling Curves What happens when we heat a sample of ice that is initially at -15°C? The addition of heat causes the temperature of the ice to increase. As long as the temperature is below 0°C‚ the sample remains frozen. When the temperature reaches 0°C (the melting point of water)‚ the ice begins to melt. Because melting is an endothermic process‚ the heat we add at 0°C is used to convert ice to water and the temperature remains constant until all the ice
Premium Thermodynamics Water Heat
recreate‚ but in the text)‚ shows a firm with a kinked demand curve a. What assumption lies behind the shape of this demand curve? The kinked demand curve assumes that other firms will follow price decreases and will not follow price increases. For instance‚ in an oligopoly model‚ based on two demand curves that assumes that other firms will not match a firm’s price increases‚ but will match its price increases. The kinked demand curve model of oligopoly implies that oligopoly prices tend to
Premium Costs Variable cost Total cost
variable cost curve. Average variable cost curve is a curve that graphically represents the relation between average variable cost incurred by a firm in the short-run production of a good or service and the quantity produced. This curve is constructed to capture the relation between average variable cost and the level of output‚ holding other variables‚ like technology and resource prices‚ constant. The AVC curve is ‘U’ shaped because the falling portion of the AVC curve reflects an
Premium
If supply curve shifts‚ how it is going to affect the market equilibrium. How market will resettle to the new equilibrium?? Changes in price result in movement along the supply curve‚ changes in other relevant factors cause a shift in supply‚ a shift of the supply curve to the left or right such a shift results in a change in quantity supplied for a given price level. If the change causes an increase in the quantity supplied at each price level. If the change causes an increase in the quantity
Premium Supply and demand
Case Discussion: Learning Curve “B” - Assignment A buyer has placed an order with a supplier for 100 pieces at a per-unit price of $281 and has collected the following cost data: Material $100 Direct labor $50 (5 hours at $10 per hour) Overhead $75 (150% of direct labor) Total costs $225 Profit (25%) $56 Total per unit $281 The buyer now wants to place an order for an additional 700 pieces. Assignment Questions 1. What do you estimate the buyer should pay per unit for the
Premium Learning curve Costs
Supply Curve Shifts Student Feb 17‚ 2013 Principles of Microeconomics The Supply Curve: Price is usually a major factor in the quantity supplied to the market. For a particular good with all other factors held constant a table could be constructed of price and quantity supplied based on observed data. This table is called a supply schedule‚ example: Supply Schedule Price Quantity Supplied 1 12 2 28 3 42 4 52 5 60 By graphing this data the supply curve is created:
Premium Supply and demand
Technology on Production and Short-run Curves Technology is the knowledge of using tools and machines to do tasks more efficiently. We use technology to control the world we live in. Since the art of making fire and creating handcrafted tools‚ our civilization has come a long way. Technology today has a great importance on production. Every advancement on technology makes the production easier‚ quicker and at a low cost. Technology has a great impact on short-run curves by when technology advances then
Premium Costs Economics Marginal cost
TASK 1 Laissez-faire Laissez-faire is an economic environment in which transaction between private parties are free from tariffs‚ government subsidies‚ and enforced monopolies‚ with only enough government regulation sufficient to protect property rights against theft and aggression. The phrase laissez-faire is French and literally means “let them do”. But it broadly implies “let it be”‚ or “leave it alone”. A laissez-faire state and completely free market has never existed‚ though the degree of
Premium Supply and demand
which of the following data?A. Federal funds rate7) Consider if the government instituted a 10 percent income tax surcharge.In terms of the AS/AD model‚ this change should haveA. shifted the AD curve to the left8) If the depreciation of a country’s currency increases its aggregateexpenditures by 20‚ the AD curve will Macroeconomics –372 Final1) The largest source of household income in the U.S. is obtained fromB. wages and salaries2) The market where business sell goods and services to households andthe
Premium Household income in the United States Federal Reserve System Federal government of the United States