The price of a firm is equal to its marginal cost in both the short and long run. In both the short and long run, price equals marginal revenue. Firms should increase output as long as marginal revenue exceeds marginal cost, and reduce output if marginal revenue is less than marginal cost.
Note that when we are in long-term equilibrium, we are also in short-term equilibrium. In the long run, P = min(ATC), and the entering firm chooses the set with the lowest ATC. The MC curve intersects ATC at min(ATC), so the same quantity has a price equal to MC.
For a perfect competitor, marginal return equals price and average return. This means that the firm's marginal cost curve is a continuous supply curve with values greater than the average variable cost. If the price falls below the average variable cost, the company will be closed.
In a perfectly competitive market, price equals marginal cost in both the short and long run.
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Answer:
The correct answer is an hour lost at the bottleneck is an hour lost for the entire system.
Explanation:
This was one of the rules of the book "The goal", by Eliyahu Goldratt. It means that the bottleneck resources are those that have capacity limitations that lead to limiting the entire production process. For this reason it is necessary to make an evaluation of each one of the processes with a direct impact on the production of the product, in order to ensure that none will present determinants that impact the entire chain.
Answer:
a) c) d)
Explanation:
a) The seller does not have to decide who gets credit - this is done by the card issuer
c) seller receives cash sooner than if credit is granted directly to the customers - The cash is received from the card issuer
d) may allow seller to increase sales volume - As cash is available to those who otherwise might not have it for purchases
Answer:
real interest rate decreases, national saving increases, investment increases, consumtion is unchhanged, output is unchanged (fixed because it is determined by the factors of production).
Explanation:
Answer:
How does voluntary exchange help set prices in a market economy?
Voluntary exchange enables fluctuation in prices and makes it to be vary in the market system, this uncontrolled prices enables customers to buy same goods at different prices because each supplier sells at any convenient prices that suits them not adding both variable cost and fixed cost to determine the price.
Explanation:
