Price elasticity of supply

Economies of scale Flow 1) Examples how economies of scale is helpful, 2) New technology and economies of scale. 3) Critic of economies of scale. 4) Economies of scope(From PDF) 5) Govt initiatives to achieve economies of scale. Economies of scale: The change in long run average cost as output increases is the basis of economies of scale. A firm enjoys economies of scale in a situation where average cost goes down when output goes up while if the average cost increases with…

comparative advantage in the production of both goods. Figure 5-2 Price Pa Pb D1 D3 D2 Quantity 28. Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand? a. D1 b. D2 c. D3 d. All of the above are equally elastic. 29. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the…

justify how the economic operations will be affected by the government involvement (SCSA, 2014). Consistent with these requirements, the study of this Economics course will apply the real world examples such as the stock market, oil prices and real estate prices to assist students to understand economic theories for analysing social issues and recognizing feasible solutions which contribute decision making. Moreover, this Economic course will develop the abilities of students to apply the…

The climate is warming and will continue to rise under human influence. Signs of climate change are already being seen in today’s environment and the significance of these changes are accepted by most people, however there are still some people who choose to deny these facts. Global warming has the potential to dramatically disrupt some of life’s essential requirements for health, water air and food. In order to plan for climate change policies, and understanding of how Australians perceive…

inequality in South Africa. The unemployed will gain access to semi-skilled and skilled jobs only if they are better educated. At the same time, an increased pool of educated workers will reduce the premia paid to the educated who are currently in short supply. Both poverty and inequality will fall as a result (Triegaardt, n.d). The environment as a social factor impacting on the health in South…

college. Yet the average college bill--including room and board--charged at a private four-year university is $37,000, and $16,000 at a public one” (Cary). So how does this make sense? It doesn’t. Two economists discovered that there was little price elasticity associated with the cost of tuition and suggest that “…tuition can be used as a lever to offset revenue losses from declining appropriation” (Hemelt, Marcotte). If a college would increase its cost 5%, which was an average of $210 per…

billion. Net income rose 19% to $668.7 million. Revenues reflect higher comparable store sales and the opening of new stores. Net income also reflects lower headquarters and advertising expenses and a $22.1 million litigation settlement gain. Price elasticity of demand…

The latest topic that has impacted recent changes in the federal minimum wage on a low-wage labor market is the fast food industry. Some fast food employees have argued to have their minimum wage increased to $15. Currently, the Federal minimum wage is between $7.25 to $15 an hour for all workers (Pollin, & Wicks-Lim, 2016). Congress, they have refused to increase American’s wages; some franchises are relying on their revenue to increase employee’s wages which are not always profitable.…

Any rise in the prices of such inputs through devaluation, would raise industrial costs and reduce the intensity of capacity utilisation. Therefore, it should be avoided as a resort to deficit financing. Devaluation with its implications will cause a contraction in economic activity and consequently slide in income tax receipts will raise the burden of Bangladesh's foreign debt overnight. It cannot stop smuggling as long as black-market transactions in foreign exchange continue. Devaluing…

Research has shown that for more than 50 years now, a drastic change in the population transitioning from cities to the suburbs has been occurring. After 1950, this movement originally gained momentum and become the leading demographic style for nearly all-crucial U.S. metropolitan areas. This migration has pushed many more Americans to live in the suburbs now than any other location in the states. Today, a good amount of middle-class African Americans have moved out to the suburbs but the…