If elasticity of demand = - 3 and price RISES 2% Quantity demanded will: rise 6

Question

If elasticity of demand = - 3 and price RISES 2% Quantity demanded will: rise 6 % fall 6 % rise3% rise.3 %. A production function shows: (A) the quantity of output the firm can produce with different quantities of inputs (B)how much profit a firm can make (C) what it will costs to produce different levels of output (D) all of these If there arc many dose substitutes for a good, the demand for this good win be: (A) elastic (B) inelastic (C) large (D) small In the long ran: (A) total fixed costs equals zero (B) total variable costs equal zero (C) there arc no variable inputs (D) marginal costs equal zero In the short ran. as the firm uses the same plant to produce an output larger than the maximum technical efficiency output (A) Average Fixed Cost rises

Explanation / Answer

Ans:

15) B-fall's 6%

The value versatility of interest is found by separating a specific change in amount by the adjustment in cost which brought on it. The progressions are constantly proportionate, or rate based, implying that the versatility of interest has no units and henceforth does not rely on upon the units of amount or request. While considering the value flexibility of interest, and especially when considering utilizing it as a part of estimating, it is essential to comprehend the different components which can impact the interest bend.

These include:

The accessibility of substitutes: a more extensive cluster of substitutes expands the value versatility of interest, as in the case of the daily paper market.

Whether the item is a need or an extravagance: vital items, for example, solutions, have a tendency to be more inelastic that extravagance items

16) Production function shows A ) the Quantity of out put the firm can produce with different quantities of inputs .

Production funcion is a generation capacity relates physical yield of a creation procedure to physical inputs or elements of creation. The creation capacity is one of the key ideas of standard neoclassical speculations, used to characterize peripheral item and to recognize allocative productivity, the characterizing center of economics.The main role of the generation capacity is to address allocative proficiency in the utilization of variable inputs underway and the subsequent appropriation of pay to those components, while abstracting far from the innovative issues of accomplishing specialized effectiveness, as an architect or expert supervisor may comprehend it.

17) B) Inelastic demand

The law of interest expresses that as the cost diminishes, the amount requested expansions. Request versatility is the adjustment in amount requested per change in an interest determinant. Despite the fact that there are a few interest determinants, for example, purchaser inclinations the fundamental determinant with which request flexibility is measured is the adjustment in cost. Organizations are especially keen on value versatility, since it gauges by the amount of aggregate income changes with the cost. A higher or lower cost may bring about pretty much income relying upon the versatility of interest for a specific item. Request versatility can likewise decide how much an item or administration is burdened, subsequent to a higher assessment rate will bring about higher income if the interest is inelastic or lower income if interest is flexible.

18) C ) there is no variable inputs

The long run is not characterized as a particular timeframe, but rather is rather characterized as the time skyline required for a maker to have adaptability over all important generation choices. Most organizations settle on choices not just about what number of specialists to utilize at any given point in time additionally about what size of an operation.the long-run harmony in impeccable rivalry requires zero monetary benefit. Along these lines, firms at last deliver the yield level connected with least long-run normal aggregate expense.

19) B) Average variable cost rises

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