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What are the main reasons that firms adjust their output when the price level change?
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∙ 11y ago
stillwagon everybody.
Wiki User
∙ 11y ago
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What is markets in which firms sell their output of goods and services?
The product market is the market in which firms sell their output of goods and services.
A situation where there are a few large firms and any change in one firm's output or prices will affect the whole market is known as?
oligopoly (study islands)
What is the marginal physical product?
The resulting rate of change in a firms output as a result of employing one extra unit of a factor of production for example labour.
A Is the market supply curve for a product more or less price elastic than the supply curve of one of the firms in the market Why?
The market supply curve of a product is more price elastic than the supply curve of one of the firms in the market. The reason is that for any given price change, the market quantity response reflects the change in output of all the firms in the market.
What outlets do firms have to sell their output?
business markets and consumer markets
What is markets in which firms sell their output of goods and services?
The product market is the market in which firms sell their output of goods and services.
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
A situation where there are a few large firms and any change in one firm's output or prices will affect the whole market is known as?
oligopoly (study islands)
What is the marginal physical product?
The resulting rate of change in a firms output as a result of employing one extra unit of a factor of production for example labour.
A Is the market supply curve for a product more or less price elastic than the supply curve of one of the firms in the market Why?
The market supply curve of a product is more price elastic than the supply curve of one of the firms in the market. The reason is that for any given price change, the market quantity response reflects the change in output of all the firms in the market.
What outlets do firms have to sell their output?
business markets and consumer markets
What is revenue cost?
the revenue of the firm is the money received that a firms get from selling its output.
What is the definition of expanding industry?
An industry whose firms earn economic profits and for which an increase in output occurs as new firms enter the industry.
What happens to a firms output when it increases its inputs?
generally it increases, however, there are some cases where the output actually decreases or remains the same.
How do firms react to unplanned reduction in stock?
its either; reducing output. reducing planned investment. increasing output. increasing consumption
Why firms hold cash?
there are basically three reasons why firms hold cash, namely speculation precaution transaction
In which of the following market structures do firms produce the welfare-maximizing level of output?
Perfect competition!
