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What else can I help you with?
What happens to the aggregate supply curve as the price level increases?
Firms have more of an incentive to increase output
Firms purchase inputs for production from households in the .?
hahahaha
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.
How does the government control output in a Communist system?
In a communist system (small 'c'), the government does not allocate any output. In a Communist system (big 'c'), the government, historically, has taken direct control of firms, mandated their production levels (or quotas), given them all the inputs considered necessary in production (from other quotas), and then takes a portion of their output for redistribution.
Explain with diagram the law of variable proportion?
Sometimes referred to as the law of diminishing returns, the law of variable proportions is concerned with the effect of changes in the proportion of the factors of production used to produce output. As the proportion of one input increases relative to all other inputs, at some point there will be decreasing marginal returns from that input. Adding more units of an input, holding all other inputs constant, will at some point cause the resulting increases in production to decrease, or equivalently, the marginal product of that input will decline. Among the inputs held constant is the level of technology used to produce that output. This is an empirical law and is therefore a generalization about the nature of the production process and cannot be proven theoretically (see Friedman, 1976; Stigler, 1966). Applied to management, Friedman argues that the law of variable proportions requires firms to produce by using inputs in such proportions that there are diminishing average returns to each input in production.
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
What happens to the aggregate supply curve as the price level increases?
Firms have more of an incentive to increase output
Firms purchase inputs for production from households in the .?
hahahaha
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.
Why does an AS curve have three ranges?
The AS curve has three ranges because of different levels of responsiveness of output to changes in price level. In the short run, firms may not be able to adjust prices quickly, leading to a horizontal range. In the intermediate range, firms can adjust prices and output, resulting in a positive sloping range. In the long run, all inputs can be adjusted, leading to a vertical range.
How does the government control output in a Communist system?
In a communist system (small 'c'), the government does not allocate any output. In a Communist system (big 'c'), the government, historically, has taken direct control of firms, mandated their production levels (or quotas), given them all the inputs considered necessary in production (from other quotas), and then takes a portion of their output for redistribution.
Explain with diagram the law of variable proportion?
Sometimes referred to as the law of diminishing returns, the law of variable proportions is concerned with the effect of changes in the proportion of the factors of production used to produce output. As the proportion of one input increases relative to all other inputs, at some point there will be decreasing marginal returns from that input. Adding more units of an input, holding all other inputs constant, will at some point cause the resulting increases in production to decrease, or equivalently, the marginal product of that input will decline. Among the inputs held constant is the level of technology used to produce that output. This is an empirical law and is therefore a generalization about the nature of the production process and cannot be proven theoretically (see Friedman, 1976; Stigler, 1966). Applied to management, Friedman argues that the law of variable proportions requires firms to produce by using inputs in such proportions that there are diminishing average returns to each input in production.
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.
How do firms react to unplanned reduction in stock?
its either; reducing output. reducing planned investment. increasing output. increasing consumption
What happens when a purely competitive firms producing cashew discover that P exceeds MC?
Combined output is too little to achieve allocative efficiency. In the long run, supply will increase as firms enter to capture economic profits being earned. Supply increase will reduce the price of cashews.
