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What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
What factors determine the equilibrium price and quantity for a perfectly competitive firm in the long run?
In the long run, the equilibrium price and quantity for a perfectly competitive firm are determined by factors such as production costs, market demand, and competition from other firms. The firm will adjust its output level until it reaches a point where marginal cost equals marginal revenue, resulting in an equilibrium price and quantity.
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
Are monopolistically competitive firms efficient in long-run equilibrium?
Monopolistically competitive firms are not considered to be perfectly efficient in the long run. This is because they have some degree of market power due to product differentiation, which can lead to higher prices and lower output compared to perfectly competitive markets.
If the equilibrium output is below potential output?
This is known as the recessionary gap
What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
What factors determine the equilibrium price and quantity for a perfectly competitive firm in the long run?
In the long run, the equilibrium price and quantity for a perfectly competitive firm are determined by factors such as production costs, market demand, and competition from other firms. The firm will adjust its output level until it reaches a point where marginal cost equals marginal revenue, resulting in an equilibrium price and quantity.
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
Are monopolistically competitive firms efficient in long-run equilibrium?
Monopolistically competitive firms are not considered to be perfectly efficient in the long run. This is because they have some degree of market power due to product differentiation, which can lead to higher prices and lower output compared to perfectly competitive markets.
If the equilibrium output is below potential output?
This is known as the recessionary gap
What is competitive supply?
There is competitive supply,if an increase in the output of one commodity requires a reduction in the output of another commodity.
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
What happens to the equilibrium wage and quantity of labor if output rises?
The equilibrium wage falls and the equilibrium quantity of labor rises
What determinis the amount of output an economy produces?
haw the amount of output an economy produces can be determinis?
While producing less then the competitive output decreases social welfare. Can it be said about producing more than the competitive output?
Yes
How do you find equilibrium price when given output and total cost?
The equilibrium price is the unit cost, which is the same as the total cost divided by the number of units produced (output).
How output and employment equilibrium is achieved through production in the classical theory?
equlibrium output and employment
