Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Show the Changes in fixed costs and profit maximisation?
A firm maximises profit by operating where marginal revenue equals marginal costs. A change in fixed costs hasn't any effect on the profit maximising output or price. Firm simply treats short term fixed costs as sunk costs and continues to operate as before. This can be confirmed graphically. Employing the diagram, explaining the total cost total revenue method, firm maximises profits at the point where slope of the total cost line and total revenue line are equal. A change in total cost would cause total cost curve to shift up by the amount of change. There would be no effect on the total revenue curve or the shape of the total cost curve. Therefore the profit maximising point would remain the same. This point can also be explained using the figure for the marginal revenue marginal cost method. A change in fixed cost will have no effect on the shape or position of these curves.
Using Factor Incomes for Calculating National Income A second method is to sum up all the incomes to individuals in the form of wages, rents, interests and profits t
Interaction of supply and demand, equilibrium price and quantity In perfectly competitive markets the market price is determined by the interaction of the forces of demand and
plot the demand schedule and draw the demand curve for the data given for marijuana in the case above
For Oliver E. Williamson, existence of firms derives from 'asset specificity' in production, where assets are specific to each other such that their value is much less in a second-
Problem: (a) Explain with the help of a diagram, the effect on a consumer's equilibrium, of an increase in the price of commodity X while the consumer's money income and price
Fundamental of managerial economic
Factors influencing Supply Curve State of technology There is a direct relationship between supply and technology. Improved technology results in more supply as with
ARGUMENTS FOR MONOPOLIES Although monopolies are usually hated mainly because their practice of consumer exploitation, there are some aspects of monopolies which are favourabl
Economies and diseconomies of scale are of two types- external andinternal. Internal economies and diseconomies are those which a firm reaps as a result of its own expansion. Conve
How economics contributes to managerial functions However economics is variously defined, it's basically the study of logic andtechniques and tools, to make optimum use of ava
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd