A monopolistic form always tries to set the output by equating Marginal Revenue (MR) and Marginal Cost (MC). In other words when MR = MC the firm was able to maximize their profit. From the diagram it is clear that the monopolistic firm started to make profit from the point where Price (Pm), Output (Qm) intersect with the MC and MR curves. In a monopolistic market the Price would be greater than the Marginal Cost (P>MC).
In a competitive market no firms can fix the price. Every firm enjoys only a normal profit in such markets. The equilibrium attains only when MR=MC. Profit of a firm depends on the difference between Average Revenue AR (Price) and Average Cost AC. In other words a firm would be able to make super profit when AR>AC. On the other hand when AR ...
Cite this document
(“Economics in Business Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/384672-economics-in-business
(Economics in Business Essay Example | Topics and Well Written Essays - 1000 Words)
“Economics in Business Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.net/miscellaneous/384672-economics-in-business.
Standard has already have taken back the ‘AAA’ status that it had once given to the US economy. Predictions of OECD OECD has predicted more trouble for the US economy in the near future. The organization has forecasted shrinkage of the world economy owing to the recent financial crisis that led many US companies to bankruptcy.
Introduction The very recent outburst of the housing price bubble in the most advanced and developed economies of the world has raised in serious concerns about the management of the macroeconomic tools, measures to combat the inflationary pressures especially by the public authorities, as that led to a financial crisis, and the consequences of the financial crisis had to be faced by the global financial economy.
According to Koos and Granata 2008, unemployment is one of the world’s most difficult agenda as it seeks to deter economic growth of a specific country or state and the entire world. Of importance to note is that, countries with a high level of unemployment have the worst economic growth while those that have a low rate of unemployment experience better economic growth (Lange 1998).
“the measure of responsiveness in the quantity demanded for a commodity as a result of change in price of the same commodity” (Wikimedia Foundation, Inc.). It is computed as a percentage change in quantity demanded divided by percentage change in price (About.com).
Real goods refer to market goods, while services refers to payment of interest on loans borrowed, royalties on intellectual property, income earned on international investments, etc. Transfer of payments on the other hand, refers to
Moynihan and Titley (2001) have said that United Kingdom was the first country to revolutionize. It is the first industrialized country. However, these days the same country has been undergoing de industrialization.
These days it has been
Due to the fall in the demand for laptops, which is one of the aforementioned types of computers that have faced a decline in demand, sellers have had to lower their prices to get more customers to buy their
Oil experiences derived demand1. In this respect, its demand refers to the quantity that buyers will desire to buy at various prices. On the other hand, the supply of oil denotes the quantity that producers are willing to take to
12 Pages(3000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Economics in Business for FREE!