Want this question answered?
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
use an appropriate diagram to analyse the effects on market equilibrium price and quantity traded for bottled water following: A fall in price of bottled water
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Explain how price and output decision are taken under conditions of oligopoly.
Price.
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
use an appropriate diagram to analyse the effects on market equilibrium price and quantity traded for bottled water following: A fall in price of bottled water
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Explain how price and output decision are taken under conditions of oligopoly.
a decrease in need which will in turn surplus the output and decrease the price level. then output will decrease.
Price.
What are the effects of inflation on real domestic output?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
It depends on the output. If the output was good and totally cleaned, I will give good price with tip, but if it's not, I will give the regular price.
Cost pushes the price of products up. Demand will decrease. Output will be reduced.
The equilibrium price is the unit cost, which is the same as the total cost divided by the number of units produced (output).
false