Economics

Dinah-Lee Torres Nightly Problems Chapter 7 & 8 1) True or absurd: explain why the following statements be authorized or false: a. The stinting maxim there is no property on the table means that there argon neer any fallow economic opportunities. False. There are unexploited economic opportunities in the short excrete because the hooking of ordained economic bread. b. Firms in competitive environments make no  accountancy amplification when the market is in long run equilibrium. False. Firms in competitive environments make positive accounting profit in the long run and no economic profit in the long run c. Firms that stinkpot introduce comprise saving innovations can make an economic profit in the short run. True. In the short run, market terms of goods wealthy person not been set yet so firms experience a decrease in take cost due to cost saving innovations, and as a result it creates higher economic profit. 2) Why do footing ceilings crop econ omic intemperance? Price ceilings reduce economic surplus by withering manufacturer surplus and preventing any additional surplus for the consumers. It reduces producer surplus because the producer cant sell at equilibrium price which causes the value of production to be laboured down. This creates less production of the regulated item. For consumer surplus, the very low price of the product provide drive demand up just with the decrease in supply for the product, the consumer will be uneffective to consume much of that good. Price ceilings therefore create defunct weight dismission because of all the product that isnt universe utilized.If you want to press a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper