The economic goals that central planned economies address are to supply enough food, housing, and other basic needs to anyone and everyone in the country. It also puts priorities on mobilizing for wars.
Answer:
Monopolist : Output at MR = MC; corresponding point at demand (AR) curve gives price.
Explanation:
Monopoly is a market structure having a single seller.
Monopolies have usual downward sloping demand curve, depicting price - demand inverse relationship. This 'falling price' case also makes monopoly Marginal Revenue curve usually lie down below its demand i.e Average Revenue Curve. Marginal cost is usually U shaped.
Monopoly producer chooses its equilibrium production quantity where : Marginal Revenue = Marginal Cost. The equilibrium price is determined at the price of corresponding equilibrium output, on the demand (average revenue) curve.
Answer:
Quantity will rise, and the effect on price is ambiguous.
Explanation:
Music compact discs are normal goods. There is a positive relationship between the demand for the normal goods and the income of the consumers.
If the compact disc players become cheaper to produce then as a result all the producers start producing music compact discs and this will increase the supply of music compact disc. This will shift the supply curve rightwards.
And if the income of the music lovers increases then as a result the demand for music compact discs increases. This will shift the demand curve rightwards.
Therefore, these changes will increase the equilibrium quantity and the impact on equilibrium price is ambiguous because that will be dependent upon the magnitude of the shift of supply and demand curve.
