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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.
what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?
Q. Explain about Phillips curve ? The Phillips curve According to traditional Phillips curve, there is a negative and stable relationship between unemployment andwage in
After a competitive bidding process, Firm G wins a contract to collect and dispose of Firm H's hazardous waste for $1,000 per year. Firm G's labor costs are $200 per year, and beca
Collateral Management is a function to handle collateral effectively. It gives interface to enter collateral data, and it has a master data of collateral descriptions and types. It
give and explain the different causes of national income variation
Using Simple Keynesian Model, discuss the effect of the following: a) An increase in govt. expenditure. b) A decrease in lump sum taxes. In this context compare the govt.
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discuss the contention that the existance of a labour market in a perfect competion is a fallacy
discuss mec
One constraint in our economy is time. As a society, we make choices about the allocation of time between work and other pursuits. In the US, most workers are eligible for overtime
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