Exceptional supply curves, Managerial Economics

Assignment Help:

Exceptional supply curves

In have some situations the slope of the supply curve may be reversed.  

i)   Regressive Supply.  In this case, the higher the price within a certain range, the smaller the amount offered to the market.  This may occur for example in some labour markets where above certain level, higher wages have a disincentive effect as the leisure preference becomes high.  This may also occur in undeveloped peasant economies where producers have a static view of the income they receive.  Lastly regressive supply curves may occur with target workers.

ii)    Fixed Supply.  Where the commodity is rare e.g. the "Mona Lisa", the supply remains the same regardless of price.  This will be true in the short term of the supply of all things, particularly raw materials and agricultural products, since time must elapse before it is physically possible to increase output.


Related Discussions:- Exceptional supply curves

Factor combination in the long run, Factor combination in the long run ...

Factor combination in the long run In the long run it is possible to vary all factors of production. The firm is therefore restricted in its activities by the law of diminish

Illustrate about pecuniary economies, Q. Illustrate about Pecuniary economi...

Q. Illustrate about Pecuniary economies? Pecuniary economies (which is monetary economies) are those economies accrued by the firm from paying lower prices for the factors used

Why do monopolies exist, Why Do Monopolies Exist? Monopolists have mark...

Why Do Monopolies Exist? Monopolists have market power and as a consequence will charges higher prices and generate less output than a competitive industry. It produces profit

What is decreasing marginal cost, What is decreasing marginal cost? All...

What is decreasing marginal cost? All additional lawn mowed generates less benefit than the earlier lawn à along with decreasing marginal benefit; every additional unit generat

Quantity demanded and supplied , a.  A major freeze destroys a large number...

a.  A major freeze destroys a large number of orange trees in Florida Ans- Since the freeze destroyed a large number of orange trees in Florida the number of oranges the selle

Determine the studies of managerial economics, Determine the studies of Man...

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

Define the pragmatic managerial economics, Pragmatic Managerial economics ...

Pragmatic Managerial economics  Managerial economics is pragmatic. In pure micro-economic theory, analysis is performed, based on certain exceptions, which are far from reality

Determine the theory of exchange and price theory, Determine the Theory of...

Determine the Theory of Exchange and  Price Theory Theory of Exchange is commonly called Price Theory. Price determination under various types of market conditions comes under

State the demand analysis, State the Demand analysis Analysis of dem...

State the Demand analysis Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since

Scarcity and oppurtunity cost, define scarcity and oppurtunity cost.show ho...

define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making

Write Your Message!

Captcha
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