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Why might a perfectly competitive market firm be willing to run at a loss in the short run?
The assumptions of a PCM firm should be outlined in order to end that the PCM firm is a price-taker - and cannot affect the market, either in terms of output or price. Using the unit cost picture, it should be made clear that ATC = AR is the breakeven level of output, and that the firm will incur losses if the price is below ATC. Though, as long as the firm is covering some of the fixed costs, it might be willing to stay in the market for the SR - as losses will be higher if it leaves the market as all set costs will remain.
how the theories of trade cycle affects in the business
1.the AD curve represents at the same time the demand for goods, money and labor in the economy 2.in the AS-AD model, higher competition among producers leads to a medium run equil
In real life, the operation of simple multiplier is affected by many leakages. Leakages in the multiplier arise out of the following reasons: (1) Saving: If all the income is sp
why is international trade important for south Africa
what is the meaning of the statement ''money is not merely a veil or wrapper''?
give and explain the different causes of national income variation
What are the requirements for something to be considered money? Why does the dollar have value?
State the Private sector in the circular flow Private sector total income is known as the national income. As private sector receives entire return from the factors of prod
exam notes of national income accounting
You can work on this assignment individually or in a group of up to 4 people. If you choose to work as a group, your group should hand in one assignment and you will all receive t
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