ECON 1. (Demand Under Perfect Competition) what type of demand curve does a perfectly competitive firm face? Why? A horizontal or a perfectly elastic‚ demand curve. A perfectly competitive firm is called a price taker because that firm must “take‚” or accept‚ the market price- as in “take it or leave it.” 2. Explain the different options a firm has to minimize losses in the short run. A firm in perfect competition has no control over the market place. Sometimes that price may be so low
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effect on the demand curve Markets in Action Advertising and its effect on the demand curve Advertisement has always been an important market strategy for firms to accomplish their goals. From cereal companies to airline companies‚ it is inevitable to go through the process of advertising. However‚ what purpose does advertising serve for consumers and suppliers in the market? In this report‚ it is to examine the relationship between advertising and the market demand curve. Moreover‚ the impact
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Explain how production possibility curves can be used to demonstrate the problem of unemployment‚ effects of technological change and the benefits of economic growth. Human wants are unlimited and resources are scarce. In order to satisfy these wants‚ all societies face the problem of allocating these scarce resources to producing the wanted products. These decisions greatly affect the economy and will contribute to the movements of growth. A graph that visually represents the results of the decisions
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1. Economies of Scale. If the firms produces in an industry with very high fixed costs‚ consumers can benefit from a large firm which can exploit economies of scale. Economies of scale lead to lower long run average costs and therefore give the potential of lower prices. Example: Would you want several firms providing tap water? Would it make sense to have 2-3 companies laying a network of water pipes and sewage systems across the country? No. It is better to have 1 firm. This is an example of
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BEA111 Online Quizzes 1-6 Quiz 1 1. Economics is best defined as the study of how A. prices and quantities of goods and services are determined in markets B. private firms and households respond to taxes and subsidies C. people make choices in the presence of scarcity and the results of those choices. D. interest rates and exchange rates are determined 2. The scarcity principle implies that A. people will never be satisfied with what they have B. as wealth increases
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context of the production possibilities curve‚ opportunity cost is measured in: a. Changing in technology b. Ringgit paid for the goods c. The value of the resources used d. The quantity of other goods given up 4. If an economy is producing at full employment‚ it means that: a. The economy is producing at a point to the left of the production possibilities curve b. The economy is producing along its production possibilities curve c. There are idle resources in this
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Production Possibility Curve Name Academic Institution Class Professor Date Production Possibility Curve The production possibility curve (PPC) is defined as a theory that highlights the factors that limit a process the difficulties of making a choice‚ and the opportunity costs associated with making that decision (Hochstein‚ 2014‚ p. 343). Any time a decision is made by a manufacturer of a good‚ or a country making exports of goods to ready global buyers‚ the best decisions need
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Spectrophotometer; the finding of protein concentration of an unknown sample of BSA‚ and by using the standard curve. Abstract A spectrophotometer’s purpose is to use colors of the light spectrum to determine the concentration of light absorbing molecules in a solution. (p.59) In this particular lab‚ our mission was to determine the protein concentration and the standard curve of the unknown sample of BSA. This‚ by preparing five dilutions of the unknown solution of BSA together with other
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The validity of the Environmental Kuznets Curve hypothesis in relation to developing countries. The proper use of the environment has become a controversial topic in economics. In both of James Beecher’s lectures during the module‚ he outlined a critique of mainstrem economics currently governing all our policies‚ and presented several key thinkers in environmental economics. The huge potential for economic growth through the exploitation of the environment has been undeniable. Vital resources
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(a) Would the demand for apartments in this area be relatively inelastic or relatively elastic? State why. (b) Would the supply of apartments in this area be relatively inelastic or relatively elastic? State why. 1 (c) Draw the demand and supply curves as you have described them‚ showing the initial equilibrium price and quantity. Label carefully. (d) Now assume the government creates a rent supplement program. Under this program‚ the renter is required to pay 30% of income in rent. Any additional
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