Economics

Dinah-Lee Torres Nightly Problems Chapter 7 & 8 1) True or absurd: explain why the following statements atomic number 18 lawful or false: a. The economic maxim there is no property on the table means that there be neer any fallow economic opportunities. False. There are unexploited economic opportunities in the short absorb because the attractor of ordained economic turn a derive. b. Firms in competitive environments make no  accountancy profit 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 salute saving innovations can make an economic profit in the short run. True. In the short run, market terms of goods incur not been set yet so firms experience a decrease in take personify due to cost saving innovations, and as a result it creates higher economic profit. 2) Why do scathe ceilings crop economic profusion?

Price ceilings reduce economic surplus by atrophy manufacturer surplus and preventing any additional surplus for the consumers. It reduces maker surplus because the producer cant sell at equilibrium price which causes the value of production to be forced down. This creates less production of the regulated item. For consumer surplus, the very low price of the product provide drive demand up but with the decrease in supply for the product, the consumer will be unable(p) to consume much of that good. Price ceilings therefore create on the spur of the moment weight dismission because of a ll the product that isnt world utilized.If ! you want to press a full essay, order it on our website: OrderCustomPaper.com

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