logo

The Assignment on Deman and Supply in Economics

   

Added on  2020-04-01

10 Pages1214 Words48 Views
Running head: ECONOMICS ASSIGNMENTECONOMICS ASSIGNMENTName of Student:Name of University:Author Note:
The Assignment on Deman and Supply in Economics_1
1ECONOMICS ASSIGNMENTTABLE OF CONTENTANSWER 1:....................................................................................................................................2ANSWER 2:....................................................................................................................................4ANSWER 3:....................................................................................................................................7REFERENCE..................................................................................................................................9
The Assignment on Deman and Supply in Economics_2
2ECONOMICS ASSIGNMENTANSWER 1:Source: (As per question)The horizontal demand curve underlying in the above market stricture indicates that it isperfect competition. Marginal revenue curve captures the unit effect of price in demand (Hansen2016). The slope of the curve is zero since for one unit smallest change in price there would beinfinitely large change in the demand made by the consumers (Kalecki 2013) This makes thedemand be perfectly elastic and any increase in price by the seller would cause the buyers toswitch their purchase to zero. This happens when market is highly competitive amidst presenceof many sellers selling identical goods. Hence, the market is perfectly competitive.The market price in such market is equal to Marginal Revenue hence it is $40 here.Profit maximizing output is 200 unit produced where Marginal cost is equal to marginal revenue.The total revenue TR= Q*MR
The Assignment on Deman and Supply in Economics_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Perfect Competition - Economics Assignment
|5
|1048
|50

Economics Study Material
|5
|618
|69

Case Study on Production and Cost
|15
|732
|109

Economics Assignment - Desklib Online Library
|8
|1151
|263

Understanding the discipline - American Economic Association
|23
|1910
|20

Market Analysis and Profit Maximization for 'Time to Go' Shop by Professor Popkiss
|2
|566
|379