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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.
For an interest rate of 12% per year compounded continuously, find (a) the nominal rate per year, (b) the nominal rate per quarter, (c) the effective rate per quarter, and (d) the
using a graph of the classical labour market, illustrate the effects of a real wage existing in the market that is lower than the equilibruim real wage.what will eventually happen
The supply equation for widgets is P = 100 + 10QS. The elasticity of supply between quantity supplied of 9 and 11?
Firstly, it is imperative that I investigate the stochastic properties of each series considered in the model prior to estimating the effects of oil price shocks on macroeconomic a
suppose c=a+by and investmentI is given.assuming mpc=.80 and I=50,find static and dynamic moel question #Minimum 100 words accepted#
why is international trade important south africa
The Research and Development Division of your company has just developed a new gaming system called the Zed Box. The R&D Division spent $800,000 developing this product and the Ma
Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002
Explain about the short term and long term interest rate in money demand. The Opportunity Cost of Holding Money Demand: a. Short-term interest rates Rates onto assets whi
what are some internal market forces and how is the outcome of output, jobs, prices, growth, and international balance
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