8 The diagram shows the costs and revenues of a firm that is producing output Q with a price P . e e MC cost, revenue AC Pe AR O Qe output MR What would explain this? A The firm is deliberately selling below cost to keep out potential entrants. B The firm wants to maximise the ...
Cost, Revenues, and Profit IB Economics Review IB Theory of the Firm Review I 5 -- 9:52 App How to Draw The Labor Market Diagram IB Macroeconomics 3 -- 26:31 App Radians Revision for maths A-Level and IB.mp4 1 -- 9:15 App Low Unemployment Explained Introduction and Overview IB ...
D The number of privatisations and revenue raised peaked in the same year. 19 The diagram shows the original aggregate demand AD1 and aggregate supply LRAS1 for an economy. LRAS LRAS 1 2 price level AD 2 AD 1 O real GDP What could explain the shifts in aggregate demand to AD and ...
–rationaldecisionmakingbasedoncostvsbenefit;bestvaluefor money –weighingupmarginalcostsandmarginalbenefitsbasedoncomparingtheextrabenefitwiththeextracost –thesocialimplicationsofchoicesocietyi.e.taking intoconsiderationhowacertainchoicemayhaveanindirectcoston 7 Resources •Resourcesarethebasiccategories ofinputs...
Firms have the incentive of proi t to Figure 6.2 Productive ef iciency in an economy Marginal cost Average cost Average costs of production s t s e o c C i r P x P Average revenue p = marginal revenue 0 q 0 q Output Quantity Figure 6.1 Productive ef iciency for a firm Figure ...
It was expected to cut the cost of transporting freight by a third, having a huge impact on trade flow and the lives of Ethiopians. The project was partially built and funded by Chinese companies with the assistance of the Chinese government. China Railway Group and the China Civil ...
14、how the costs and benefits change in response to incremental changes in actions. ? Any additional action by an individual or a firm, such as buying an additional pair of shoes or increasing production of a product by an additional unit, brings additional cost. ? The central question in ...
20、 axis units here are unrelated to the previous diagramJohn Sloman, Keith Norris: Principles of Economics 2e 2007 Pearson Education AustraliaAverage cost conceptsAverage fixed cost (AFC) total fixed cost divided by the quantity of output produced:Average variable cost (AVC) total variable cost ...
By imposing a tariff and reducing the volume of imports the current account deficit decrease Import decreases, aggregate demand increases, AD = C + I + G + X- I, AD will increase leading to a shift of the AD to the right to increase the output Refers to case where government revenue ...
both a and b-also known as ppc-graph showing input/output a city uses local tax revenue to construct a new ballpark. By doing so they must give up the construction of a new city swimming pool. This is the concept of opportunity cost a central question in economics is how to deal with...