What is an example of an internal diseconomies of scale?
Inefficient communication
Better road and transport links
Traffic congestions
Lack of skilled labor
Variable costs are business costs that vary directly with
What does a LRAC curve include?
SRAC curves
Diseconomies of scale
Decreasing returns to scale
Different plants of production
The finance monetary costs, or accountable costs are
Accounting profit
Consumer surplus
Variable costs
Explicit costs
What type of demand is the following: when goods or services have more than one use so it increased the demand for one product and fall of supply in another.
Latent demand
Effective demand
Complementary demand
Composite/ Joint demand
What are causes of shift in supply?
Climatic conditions
Increase in price of substitute goods
Rise in real income
Expectations of future price change
If two goods are in complementary demand and Good A decreases its price, what will happen to the demand of Good B?
Have an expansion
Have a contraction
Rightward shift in demand
Leftward shift in demand
In price elasticity of demand, what is an elastic demand?
When the price elasticity of demand equals 0
When the percentage change in demand is greater than the percentage change in price
When the price elasticity of demand is from 0 to 1
None of the above
In price elasticity of supply, when the supply is perfectly , a change in price has no effect on the quantity supplied onto the market.
Income elasticity of demand measures the relationship between the change in quantity demanded and a change in real income. Why do normal goods and normal luxuries have a positive elasticity?
Demand falls as income rises and vice versa
As consumer incomes rise, more is demanded at each price level so demand rises less proportionately to a change in income
As consumer incomes rise, more is demanded at each price level so demand rises more proportionately to a change in income
