Economics p3 post ur doubts here..:)

[AlphaBeta]

answer C , i got da answer , but not sure of the logic , anyone ?

 

[David Hussey]

View attachment 44714
answer C , i got da answer , but not sure of the logic , anyone ?

its same as the how the mc curve becomes the supply curve
so here its the opposite thing

 

[AlphaBeta]

its same as the how the mc curve becomes the supply curve
so here its the opposite thing

i thought that it was AVC > AR tng man for supply(bcz they will not cease prod ) , anyway wats da logic ??

 

[David Hussey]

:: A^

 

[:: A^]

:: A^

Thats some nice handwriting right there

 

[AlphaBeta]

:: A^

this supply curve is for perfect competition na

 

[David Hussey]

how A
id understand these types of questions :/

 

[:: A^]

MV = PT
V is constant so
M=PT
so if M rises, PT also will rise. (PT is money income)

how A
id understand these types of questions :/
View attachment 44717

 

[:: A^]

anyone knows about shutdown point for a monopoly? notes? anything?

 

[AlphaBeta]

anyone knows about shutdown point for a monopoly? notes? anything?

i think wen they are makin excessive loss , but not sure , natural monopolies are also there

 

[David Hussey]

MV = PT
V is constant so
M=PT
so if M rises, PT also will rise. (PT is money income)

ohhk thnx!

 

[David Hussey]

how b? y not C

 

[AlphaBeta]

View attachment 44718
how b? y not C

Price elastic(%inc in qty will bemore than %chng in price )btw pric increases wen quota is imposed >means bal of trade improves
terms of trade worsenin is slf explanatory

 

[David Hussey]

i dont get it :/

 

[AlphaBeta]

i dont get it :/

limit bcz of Quota ? that part or elasticity part ?

 

[David Hussey]

everything

 

[AlphaBeta]

everything

Quota will improv BOT bcz its a limit to wat can be imported.

 

[David Hussey]

so how does it worsen terms of trade?

 

[AlphaBeta]

so how does it worsen terms of trade?

Quotas will raise da price to so import price expensiv compared to export price
check >www.youtube.com/watch?v=EWvs1GCGAMk

 

[AlphaBeta]

Why C ? Why not D ?