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business markets and consumer markets
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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.
Why the demand curve faced by a perfectly competitive firm is horizontal?
The firm at perfect competition faces more than one competitor. All the firms are price taker and they take the market price as given. If one firm wants to sell its output at a pricehigher than the market price, it will sell nothing as buyers will go to the firm offering lower market price. If one firm wants to sell its output at a lower price, it will take the whole market demand for it. At the market price, determined by interactions between sellers, the firms will sell whatever output it wants. So, the firms determine the price and each firm determines its output. So the demand curve will be horizontal.
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
The general willingness of firms to produce and sell a product at various prices is?
The general willingness of firms to produce and sell a product at various prices is known as supply.
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 the demand curve faced by a perfectly competitive firm is horizontal?
The firm at perfect competition faces more than one competitor. All the firms are price taker and they take the market price as given. If one firm wants to sell its output at a pricehigher than the market price, it will sell nothing as buyers will go to the firm offering lower market price. If one firm wants to sell its output at a lower price, it will take the whole market demand for it. At the market price, determined by interactions between sellers, the firms will sell whatever output it wants. So, the firms determine the price and each firm determines its output. So the demand curve will be horizontal.
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
Whole salers are firms that sell driectly to the consumer?
Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.
Which term means the amount that firms will produce and sell at a specific price?
Quantity supplied is the amount that firms will produce and sell at a specific price.
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
The general willingness of firms to produce and sell a product at various prices is?
The general willingness of firms to produce and sell a product at various prices is known as supply.
What do economist call the things that firms sell wich cannot be touched or seen?
Economists call the things that firms sell which cannot be touched or seen goods and services.
What are the main reasons that firms adjust their output when the price level change?
stillwagon everybody.
