Answer:
Total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good.
Explanation:
As consumption increases, total utility increases but marginal utility would begin to diminish after a certain point is reached as a result of diminishing marginal utility.
The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit falls.
I hope my answer helps you
Answer:
Changes in the equilibrium interest rate
- affects both the size of the domestic output and the allocation of capital goods among industries.
Explanation:
Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.
The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa
An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.
Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.
The equilibrium interest rate changes with the economy and monetary policy.
There are several first mover advantages including:
-Brand recognition: better chance of being recognized if you were the first to do something
- Economies of Scale: learn how to perfect and grown in the market before other competitors come along
-Switching costs: when customers are established with the first brand they are less likely to want to spend the money to switch to a new competitor
Answer:
y = 50 %
Explanation:
As per the data given in the question, computation are as follows:
Expected return = y × expected rate of return for portfolio + (1 - y) × rate of T-bills
By putting the value from the given data in the above formula, we get
0.09 = y×0.12 + (1 - y)×0.06
0.09 = 0.12y + 0.06 - 0.06y
0.03 = 0.06 y
y = 0.50
= 50%
Answer:
a.
FALSE
<em>The argument above is in part inaccurate. In the long run, the monopoly dominant firms gain no economic profit at the profit generating production as their LRAC= LRAR at.
</em>
The firm is not effective economically (productively) though.
A monopolistically dominant firm is not successful effective because it does not achieve the average cost curve at the minimum level. The difference between supply and supply of the equilibrium at the minimum average cost is called overcapacity.
b.
FALSE
The monopolist has the power to make the price to maximize the profit. The monopolist, however, always has to respect demand rule of law. Its AR-curve is a sloping downward curve.
<em>It indicates that if the monopolist decides to increase production, he will have to lower the price. It shows that to increase income, the monopolist can set its price but can not set any price.</em>
c.
FALSE
The shut down point for reasonably competitive firms is Price= AVC.
When the price falls below the average cost of the product, otherwise the business must shut off.
<em>Otherwise, the business must continue to manufacture until the price falls below the average cost of the product. It will still deliver, even if the average income or price is below the average output.</em>
