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What effect does an increase in taxes have on the production of a production?
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What is the output effect and the price effect for an oligopoly?
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.
Why does an increase in autonomous taxes have the same effect on equilibrium output as does an decrease in autonomous transfers?
taxes indirectly decrease Y, it does this by decreasing consumption
What effect does it make if resources increase in Production Possibilty Frontier?
The effect of increased resources in a production possibility frontier, or PPF, is an imbalance in the graph. Since a PPF is created based on set production factors, the results of the graph would be skewed with an increase in resources unless other production factors were increased accordingly.
What best describes the economic effect that results from a government budget surplus?
Overall demand decreases reducing the incentive for producers to increase production
How can taxes and subsidies effect in supply?
Taxes can decrease the supply when they are raised and increase the supply when they are lowered. Subsidies, on the other hand, can raise the supply when raised and lower the supply when they are lowered.
What is the output effect and the price effect for an oligopoly?
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.
How is an immediate effect of an increase in unemployment illustrated on production possibility curve diagram?
a movement of the production point closer to the curve
What effect does it make if resources increase in Production Possibilty Frontier?
The effect of increased resources in a production possibility frontier, or PPF, is an imbalance in the graph. Since a PPF is created based on set production factors, the results of the graph would be skewed with an increase in resources unless other production factors were increased accordingly.
Why does an increase in autonomous taxes have the same effect on equilibrium output as does an decrease in autonomous transfers?
taxes indirectly decrease Y, it does this by decreasing consumption
What best describes the economic effect that results from a government budget surplus?
Overall demand decreases reducing the incentive for producers to increase production
How can taxes and subsidies effect in supply?
Taxes can decrease the supply when they are raised and increase the supply when they are lowered. Subsidies, on the other hand, can raise the supply when raised and lower the supply when they are lowered.
What agricultural invention designed to increase production had the effect of increasing the number of slaves needed for labor in the South?
The cotton gin
What would most likely occur if the government's priority was to increase government expenditures?
increase taxesincrease taxesincrease taxes.
What agricultural invention designed to increase production had the effect of increasing the number of slaves needed for labor in the deep south?
The cotton gin
How do you increase production without much resources?
You can find suppliers to increase your production.
What are the taxes on production transportation sale or consumption of goods?
Excise Taxes.
In travian how do you increase your wheat production?
Upgrade wheat production fields to a higher level to increase your wheat production
