Explain why the need to have a high aggregate demand

Assignment Help Microeconomics
Reference no: EM13202178

Explain why the need to have both a high aggregate demand and a high profit rate for firms to be profitable are two requirements that may stand in contradiction to each other, which in turn may lead to problems in the accumulation of capital and even crises.

Reference no: EM13202178

Questions Cloud

What is the price and quantity : An ice cream company finds that at a price of $5.00 demand is 6300 units. For every $0.15 decrease in price, demand increases by 135 units. Find the price and quantity sold that maximizes revenue. What is the price and quantity?
What factors influence the level of investment : In turn, what factors influence the level of investment what sort of government policies or programs are capable of stabilizing employment and dampening the business cycle How do these policies work
How far apart are towns b and c : town A is 60 km due east of town B. Town C is 144 km from town A at a bearing (from A) of N57degreesE. How far apart are towns B and C?
Determine the earnings after taxes : Determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b and why are the percentage changes different
Explain why the need to have a high aggregate demand : Explain why the need to have both a high aggregate demand and a high profit rate for firms to be profitable are two requirements that may stand in contradiction to each other, which in turn may lead to problems in the accumulation of capital and ev..
Find the shortest length of cable needed : A steep mountain is inclined 75 degrees to the horizontal and rises 3400 feet above the surrounding plain. A cable car I to be installed from a point 800 feet from the base to the top of the mountain. Find the shortest length of cable needed.
Risk management and measurement issues : Presentation of work in the prescribed format, free from spelling and grammatical errors - higher volume of traffic-both people in cars and cargo in trucks- a safe financial system will help generate higher stable economic growth
Use differentials to estimate the maximum and relative error : Use differentials to estimate the maximum and relative error in the calculated surface area. (Round maximum error to the nearest whole number and relative error to three decimal places.)
Give a formula for the annual inventory control costs : Give a formula for the annual inventory control costs, C, as a function of the maximum storage size, s. (This would only be valid for the first five years.)

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd