Economists normally assume that the goal of a firm is to

Business

1 answer:

Elina [12.6K]3 years ago

6 0

Answer:

Profit Maximisation

Explanation:

Profit is the difference between total revenue (receipts) from sale & total cost (expenditure) on production.

Total Revenue = Price x Quantity ; Total Cost = Average Cost x Quantity

Economists study all the producer behaviour, based on assumption that : Goal of firm is Profit Maximisation.

Maximising Profit implies maximising the difference between Total Revenue & Total Cost [ TR - TC] . This further leads to producer equilibrium rule of Marginal Revenue = Marginal Cost [MR = MC] ; i.e additional revenue per unit sold equals additional cost per unit production.

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If economists calculate the gdp for 2009, using current prices of year 2009, what are they estimating?

Vlad [161]

They are estimating the Nominal GDP. The Nominal GDP measures the quarterly economic output that occurred in the year. This would analyze production, employment, all the elements in the financial circulation. This is different from the real GDP because here it would include the inflation of prices that occurred. Nominal GDP only reflects on the economical changed within the current year regardless of inflation.

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3 years ago

The basic purpose of imposing legal reserve requirements on commercial banks is to: A. Assure the liquidity of commercial banks

Aliun [14]

Answer:

Provide a device through which the credit-creating activities of banks can be controlled

Explanation:

The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.

The legal reserve requirement is used by the government as a means to control the supply of money in the economy.

If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.

A high reserve requirement reduces the amount that banks can make available for loans.

I hope my answer helps you

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3 years ago

Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $18,600 of its sal

Kitty [74]

Answer:

$118,860

Explanation:

Gross Margin:

= Revenue - Cost of Goods Sold

= $290,000 - $100,000