economics 2 Flashcards
factors determining price elasticity of supply
Productivity
Substitutes
Stock
Spare capacity
Time lag
is economic growth always a good thing?
economic growth is increase in production of goods and services typically measured in GDP
One positive of economic growth is
An example of this is
However,
This is a problem seen in
Another positive of economic growth is
An example of this is
However,
This is a problem seen in
what is the difference between internal, and external growth
Internal Growth
expansion of a company’s operations from within, through the development of new products, services, or processes, and by increasing sales and market share.
External Growth
expansion of a company through mergers, acquisitions, partnerships, or joint ventures with other companies. It involves gaining access to new markets, customers, or resources by partnering or acquiring other firms.
MC=?
@TC/@Q
AVC=?
TVC/Q or MC
ATC=?
AVC+AFC or TC/Q
what costs occur in the short run?
fixed and variable costs
what costs occur in the long run?
only variable costs
what is the difference between fixed and variable costs?
variable costs change with output, fixed costs do not
TR=?
P*Q
AR=?
P
MR=?
@TR/@Q
why does PED change along the demand curve?
because as price takes up m ore of income, demand becomes more inelastic
normal profit is…
AR=AC
subnormal profit is…
AR<AC
