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Economics, Accounting & Business: Post your doubts here!

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I am also confused as its a tricky question.
but as productive efficiency is increasing it means that firm is experiencing lower cost, consumers are not gaining because their is also a reduction in cost (the cost as a % of price remains more or less same) , and shareholders are gaining as the firm is enjoying lower cost and this might increase their profit.
 
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Q3- Clearly, the shift in the budget line from JK to JH in the diagram could have been due to a reduction in the price of good X.However, one cannot definitely conclude that this is what caused the shift in the curve.Another possible cause would be an increase in money income accompanied by an increase in the price of good Y. All one can say for certain is that there has been a fall in the relative price of good X and that the consumer’s real income has increased.
 
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if you'll help me i might be able to turn my A into A*
try to understand
Love from Pakistant to my bengali bro please yaar i beg you.. :)

I can't believe that you are losing your cool! Don't panic! You always contract with me so whatever I say you may argue and I am not in a mood of arguing. Surprising, this is not the usual Waleed. You mentioned that you love taking challenges but now why are you you submitting your defeat. Previously you used to look down at us so now is the time regain that ancestral ambition which you showed to us 41 years ago. Take it as a Game of Thrones

I believe you have the guts of a true Pakistani use it!
 
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Q3- Clearly, the shift in the budget line from JK to JH in the diagram could have been due to a reduction in the price of good X.However, one cannot definitely conclude that this is what caused the shift in the curve.Another possible cause would be an increase in money income accompanied by an increase in the price of good Y. All one can say for certain is that there has been a fall in the relative price of good X and that the consumer’s real income has increased.
so for a similar ques. is it acceptsble if we say it shifted due to decrease in price of C instead of the real income thing. Why are the controversial ans. given in the options?? and wat abt the other ques. as in the O/N 09-32. difrence betwn monopoly n perfect comp.??
 
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so for a similar ques. is it acceptsble if we say it shifted due to decrease in price of C instead of the real income thing. Why are the controversial ans. given in the options?? and wat abt the other ques. as in the O/N 09-32. difrence betwn monopoly n perfect comp.??

I think the real income thing is a more sure option ... because like i mentioned the shift in the budget line from JK to JH in the diagram could have been due to a reduction in the price of good X.However, one cannot definitely conclude that this is what caused the shift in the curve...so if this option is there choose it...if not then the reduction is second best option :)
 
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I can't believe that you are losing your cool! Don't panic! You always contract with me so whatever I say you may argue and I am not in a mood of arguing. Surprising, this is not the usual Waleed. You mentioned that you love taking challenges but now why are you you submitting your defeat. Previously you used to look down at us so now is the time regain that ancestral ambition which you showed to us 41 years ago. Take it as a Game of Thrones

I believe you have the guts of a true Pakistani use it!
Actually i cant do everything in one night...
Im not feeling good :\
just tell me about
AR MR AC importance to all market structures and how they change their output and price according to changes in their AR MR AC MC
 
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Yes, this an assumption, perfect competition has a ease of coming and going out of the market since they last long. This is written in only old economics book. And monopolistic competition are some what bound by price rigidity due to competition and have to seek product differentiation. The other options are not possible.

As for the second question, you have to remember any one-side or two-sided shiftment indicates an increase in income. Price reduction will rather increase for X but then again reduce for Y as income is still the same and the substitution effect also applies but rather it is the income effect which is required here. Income effect causes shift Substitution causes reallocation of the budget
 
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Now that is an excellent question!.

This may sound amusing but a legal migration of labour from developing country means skilled workers are coming to the market. So economic growth will increase. As for the inflation decrease as labour supply increase so the wage inflation will also decrease as developing county worker will be willing to work for low wage even as due to the fact that they do realise the purchasing power of the developed currency is strong.

This is a question I myself would have got wrong!
 
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Yes, this an assumption, perfect competition has a ease of coming and going out of the market since they last long. This is written in only old economics book. And monopolistic competition are some what bound by price rigidity due to competition and have to seek product differentiation. The other options are not possible.

As for the second question, you have to remember any one-side or two-sided shiftment indicates an increase in income. Price reduction will rather increase for X but then again reduce for Y as income is still the same and the substitution effect also applies but rather it is the income effect which is required here. Income effect causes shift Substitution causes reallocation of the budget

for the perfect comp. isnt D possible?? large no. of firms...barriers to entry?? why isn't this the ans??

and for the second one...the decrease in price of X is an obvious ans. i know the real income wala ans bhi correct hai. leave it...i will memorise this one now. hahah
 
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