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In long-run equilibrium P equal minimum ATC equal MC. The equality of P and minimum ATC means the firm is achieving?
Wiki User
∙ 8y ago
Productive efficiency.
Wiki User
∙ 8y ago
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Why the introduction of a minimum price below the equilibrium price reduces social welfare?
If the prices are set below the level of equilibrium, the quantity supplied will be less than the quantity demanded. Introduction of minimum prices will lead to hoarding of goods, thus social welfare falls.
How might a law setting minimum wage below the equilibrium point have an unintended effect?
A law setting the minimum wage below the equilibrium point might have an unintended effect that could lead to unemployment. It also prevents poor families being able to better their conditions and thus increases poverty.
What is minimum price legislation?
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
Types of equilibrium?
In physics there are two common types of equilibrium: static equilibrium and neutral equilibrium. Equilibrium usually is related to potential energy, for a system to be at equilibrium it must maintain the balance between the two types of mechanical energy: potential and kinetic. The first equilibrium: static means that the system is in a relatively low (relatively means that there could be lower energy but the current states is a local minimum), thus small disturbances to the system will be returned to its original equilibrium. The other type of equilibrium is neutral equilibrium, the relative energies of the system is constant, thus disturbances to the system will move the system but it will remain at the same equilibrium value, and the system makes no effort to return to its original state. Please take a look at the graph for a visualization of these 2 types.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
In long run equilibrium P equals minimum ATC equals MC what is the significance of the equality of P and minimum ATC for society?
There are only normal profits in the market, so no firms will enter or exit the market.
The lowest point on a wave is the wave?
Minimum? Distance from equilibrium to minimum is the amplitude...
Why potential energy is minimum at equilibrium distance?
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Why the introduction of a minimum price below the equilibrium price reduces social welfare?
If the prices are set below the level of equilibrium, the quantity supplied will be less than the quantity demanded. Introduction of minimum prices will lead to hoarding of goods, thus social welfare falls.
Show that cohesive energy is minimum at equilibrium separation?
We have Lennard-Jones Potential given by, U=4epsilon[{(sigma/R)^12}- {(sigma/R)^6}] At equilibrium, dU/dR=0 if U is minimum. Solving, we get U=-epsilon which is indeed the bottom of the potential well.
What is the significance of an equilibrium?
There is balance: demand equals supply (in economics). Prices are stabilized. Risks for firms are reduced to a minimum.
How might a law setting minimum wage below the equilibrium point have an unintended effect?
A law setting the minimum wage below the equilibrium point might have an unintended effect that could lead to unemployment. It also prevents poor families being able to better their conditions and thus increases poverty.
What is minimum price legislation?
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
What is the difference between phase equilibrium and metastability?
For the condition of phase equilibrium the free energy is a minimum, the system is completely stable meaning that over time the phase characteristics are constant. For metastability, the system is not at equilibrium, and there are very slight (and often imperceptible) changes of the phase characteristics with time.
What is the purpose of clia?
The purpose of CLIA is to set minimum standards for all laboratories to follow and to determine if laboratories are achieving those standards.
Types of equilibrium?
In physics there are two common types of equilibrium: static equilibrium and neutral equilibrium. Equilibrium usually is related to potential energy, for a system to be at equilibrium it must maintain the balance between the two types of mechanical energy: potential and kinetic. The first equilibrium: static means that the system is in a relatively low (relatively means that there could be lower energy but the current states is a local minimum), thus small disturbances to the system will be returned to its original equilibrium. The other type of equilibrium is neutral equilibrium, the relative energies of the system is constant, thus disturbances to the system will move the system but it will remain at the same equilibrium value, and the system makes no effort to return to its original state. Please take a look at the graph for a visualization of these 2 types.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
