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

Long run equilibrium of a firm under monopoly, Long run Equilibrium of a Fi...

Long run Equilibrium of a Firm under Monopoly In the long run, firm has the time to adjust his plant size or to employ existing plant so as to maximise profit. Long run equili

Eating a certain amount, Jeremy is an economics learner who loves hamburger...

Jeremy is an economics learner who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u

Econ600, 250 word essay: A New Hampshire resort offers year-round activitie...

250 word essay: A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; in the summer, golf, tennis, and hiking. The resort’s oper

Relation between average cost and marginal cost, Q. Relation between averag...

Q. Relation between average cost and marginal cost? Relationship between MC and AC are the following: If MC is below AC then AC should be falling. This is because, if MC

Balance of payments - reason for protection, Balance of Payments Perha...

Balance of Payments Perhaps the most immediate reason for bringing in protection is a balance of payment deficit.  If a country had a persistent deficit in its balance of paym

Mathematical approach to revenue and cost functions, A MATHEMATICAL APPROAC...

A MATHEMATICAL APPROACH TO REVENUE AND COST FUNCTIONS Recall that TR = P x Q This implies that P(AR) = TR                                     Q For example, assuming

Movements along supply curve, Movements along the supply curve Movemen...

Movements along the supply curve Movements along the supply curve are brought about by changes in the price of the commodity. When price increases from P1 to P2, quant

Selling a particular brand of tea, A company is selling a  particular bran...

A company is selling a  particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it.

Disadvantages of a free economy, Disadvantages of a Free Economy The f...

Disadvantages of a Free Economy The free market gives rise to certain inefficiencies called market failures i.e. where the market system fails to provide an optimal allocation

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