0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is the likely effect of this high demand on gasoline prices?
The Price of the gasoline with increase : D
Which statement most accurately explains the effect pf competition among local gas stations on the price of gasoline?
The demand for gasoline will decrease. The price of gasoline will decrease. The supply of gasoline will increase. The price of gasoline will increase.
What is likely effects of this high demand on gasoline prices?
The Price of the gasoline with increase : D
How does a monopolistically competitive firm determine its profit-maximizing price?
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
Is it illegal to change the price of gasoline twice in one day?
No, it is not.
What is a change to the total revenue resulting from the sale of one more unit of output in aa perfectly competitive from?
The change of total revenue per unit sold is known as marginal revenue. In a perfectly competitive firm, marginal revenue = marginal cost = price.
How do you measure whether producers respond to a price change?
a consumer will respond to the price changes in such a way that it could express its marginal utility
What characteristics lead to a downward-sloping demand curve?
An increase in purchasing power as market price decreases.Diminishing marginal utility.
Is the cost of gasoline intensive or extensive property?
Intensive because the price of gasoline is not going to change no matter how much you get.
How much did a gallon of gasoline cost in 2000?
Price of one gallon of gasoline cost 1.70 dollars in USA in 2000. Interestingly price of gasoline was 1.60 dollars in 1990 which means an increase of only 0.10 dollars in 10 years.
What is the relationship between marginal utility and demand?
There is a close relationship between the marginal utility and price of a commodity.The additional satisfaction from the consumption of an additional unit of the commodity is called marginal utilty. Price means the value of the goods expressed in the terms of money.Price of all units of he same goods of consumption are more or less identical.It means that the consumer pays the same price for all the units of the same goods of consumption. But marginal utility of the goods of consumption start diminishing as the consumer increase the units of consumption of the commodity.Therefore the consumer will like to pay that price for the commodity,which is equal to the marginal utility he gets from the commodity.If the price of the commodity are higher than the marginal utility he derives from the commodity he will not like to purchase the commodity. In this way there is a clod\se relation between the marginal utility and the price of the commodity.
What is the relationship in price and marginal revenue for price setters?
The marginal revenue of selling an additional unit of output for a price setter (hence within an imperfect market) is always less than market price. Picture a downwards sloping market demand curve (hence individual monopolies demand curve); at P=6, Q=2, and at P=5, Q=3. To sell an additional unit of output, the firm must drop price from 6 to 5, meaning the total revenue will increase from (6x2)=12 to (5x3)=15. This increase in revenue (marginal revenue) is $3. Note $3 is not only smaller than the original price, but than the new price as well. Hence, price is always greater than marginal revenue for a price setter.
