Equilibrium is the intersect of the two curves. The curves show you how much the producers supply and how much the consumers demand at each possible price.
The demand curves shows that the higher the price is, the less the consumers demand. That's obvious—the consumer wants something, but not at any price. He's only willing to pay so much. If the price goes higher and higher, less and less people want to buy the good.
The higher the price is, the more the producers can supply. This is because some producers are able to produce at lower costs; they're better and more efficient than other producers. Other producers, who produce at higher costs, would go bankrupt if they tried to produce at lower prices. But when the price goes up, even the worse producers, who have higher costs, are able to make profit. So, more producers supply to the market.
What happens now, when the price gets lower than the equlibrium? As you can see from the chart, producers would supply less than consumers would be willing to consume at that particular price. There would be SHORTAGE. This happens when the goverment sets price ceilings (like on gas in the 30's). An opposite situation happens when there is price floor—for example minimum wage (because wages are prices too; prices of labor). In that case, there is surplus—in case of minimum wage that means surplus of labor (unemployment).
But when the markets are free to set the price, they will quickly establish equlibrium again. The producers will see that there is a shortage. They'll realize they can set higher prices and make bigger profits. They can't set higher price than the equilibrium though, because there would be surplus and they would have their warehouses stuffed with goods noone wants to buy at that price.
This is the Answer Am 100% sure.
Answer:
The person should do whatever impacts his/her company or organization in a good way.
Explanation:
Sometimes facing ethical decisions could be hard, but usually in business everyone is selfish.
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Answer:
The correct answer is option A.
Explanation:
Monopolistic competition is a market structure where there is a large number of producers selling differentiated products. These firms are price makers. There is very low or no restriction on the entry and exit of new firms.
Positive economic profits earned by the existing firms will attract potential firms to enter the market. When new firms enter, it increases the supply in the market.
This causes the price and market share of existing firms to decline. As the individual demand curves of the existing firms shift to the left, their profits will increase as well.
Answer:
Contribution margin per pound
Product A = $30
Product B = $20
Product C = $21
Explanation:
Products A B C
Direct Material $36 $90 $45
Provided cost of raw material per pound is $9
Pounds of raw
material used in a unit $36/9 = 4 $90/9 = 10 $45/9 = 5
Contribution per unit $120 $200 $105
Contribution margin per pound = Contribution per unit/ Pounds per unit
= $120/4 = $30 $200/10 = $20 $105/5 = $21
Highest contribution margin per pound is of Product A = $30
Contribution margin per pound
Product A = $30
Product B = $20
Product C = $21
Answer:
Explanation:
(A)
Governments should take measures -legal, fiscal, monetary, social, etc - to protect their economic advantages.
This is the reason for Ministers of Finance. A country should know the goods and services in which it has competitive advantage of production or supply or quality. The government should develop policies and tactics to protect this advantage.
(B)
Governments should only seldom penalize companies that offshore manufacturing jobs. Why? Because sometimes, it is necessary to offshore manufacturing jobs. Foreigners might have the exact expertise needed in that field. If the government however feels that foreigners are gaining traction in that sphere of the economy, they can create an avenue for their citizens to be equipped with the expertise.
(C)
No. Governments should not forbid the sale of know-how to other countries. The government should or could set a 'price floor' that is high, as the minimum amount at which the knowledge is to be sold. Sale of technological know-how is an important source of revenue so it should be encouraged.
(D)
Governments should adopt the Venetian Model.
