

Micro Essay

405 words - 2 pages

1. dcsvgeerhnIt is the annual flow of net income generated by an investment expressed as a percentage of the total investment
2. A normal rate of return is the rate of return on capital that is just sufficient to keep owners satisfied.
3. Marginal product versus average product
Marginal product is the additional input that can be produced by hiring one more unit of a specific input, holding all other input quantities constant

4. Short run is the period where the firm is operating under a fixed scale (fixed factors) of production; and, new firms can neither enter nor exit an
Long run is ...view middle of the document...

Hence, as output rises, average cost of production falls. This is what is called economies of scale: a reduction in cost per unit of output that follows from a larger scale of production.
* The sources of economies of scale are mostly technological. However, some result from sheer size (buying in volume for lower prices)

Constant returns to scales means that the quantitative relationship between input and output stays constant

Decreasing returns to scale is when average cost increases with scale of production. Its most often cited cause is bureaucratic inefficiency.
6. Long- run adjustments and mechanism.
a. Long run adjustments to short run condition: in a long run equilibrium, each firm will choose the scale of plant that produce its goods at minimum long run average cost (optimal scale of plant). This is because competition drives firms to adopt not just the most efficient technology in the short run but also the most efficient scale of operation in the long run.

b. Long run mechanism: (1) investment flows toward profit opportunities. (2) The entry and exit of firms involve the capital market. Indeed, investment will favor those industries in which profits are made. Industries in which firms undergo losses will gradually contract from disinvestment. (3) In long- run competitive equilibrium,
hjP = SRMC=SRAC=LRAC and (4) economic profits are zero.

Other Papers Like Micro

Xyz Of Micro Eco Essay

918 words - 4 pages XYZhfffffffddddddddddddddddddddddddddddddddddddaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

Micro Economy Essay

951 words - 4 pages Question 1 Provide short answers to the following: (a) Explain in detail the process whereby banks create money. 1. Banks have excess reserves 2. Banks lend excess reserves 3. The quantity of money increases. 4. New money is used to make payments. 5. Some of the new money remains on deposit. 6. Some of the new money is a currency drain 7. Desired reserves increase because deposits have increased 8. Excess

Financial Analysis And Forecast Report

694 words - 3 pages to allow internal and external comparison of the past and present performances to weigh future decisions on profitability potential against uncertainty and or risk. The financial data provided by Micro Chip Computer Corporation will be analysis to weigh past performances and determine future profitability. Financial Data Chart, Calculations, and Analysis In determining Micro Chip’s year-to-year percentage annual growth total net sales per

Msme India

1728 words - 7 pages PROLOGUE: An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services Sector, as follows: * Manufacturing Sector: Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is as below: | | * A micro enterprise is an enterprise where

Efesgesges Esf

452 words - 2 pages sustainability This assessment task is broken down into four (4) unit activities to be completed at the end of each unit starting 23rd February 2015 and submitted to Moodle for draft feedback Unit Activities (What are the unit activities) • Introduction (economic objectives) / monetary policy • Fiscal policy • Micro Economic Reform (M.E.R) • Evaluation of the government's policy mix   Tasks Your investigation must cover ALL of


394 words - 2 pages China and India With the ever growing population marketing to the youth is a strategy that marketers will need to be vigilant about. When marketing to the youth marketers need to consider how China and India’s youth compare to Western-based youth and their consumption. Marketers need to know how the youth’s consumption factors into their marketing strategy. Marketers will also need to consider how micro- and macro-environmental forces will


332 words - 2 pages for equality, recognition and acknowledgement. In order to fully analyze the sexes in this book, the micro, meso and macro levels need to be looked at individually to observe where sexuality is imagined and experienced by both genders. On the micro level, the sexes are very different from one another in this book. The women are expected to be large in weight and wear pants and shirts. The men are often wearing skirts and blouses with a

The United States Beer Industry

544 words - 3 pages . The competitive structure of the brewing industry using Porter’s five forces model. a. Risk of entry by potential competitors. New micro brewing companies have low barriers of entry. New micro brewing companies do not rely heavily on brand loyalty or economies of scale. Mass market brewers our faced with higher barriers to entry because of brand loyalty of customers and absolute cost advantages. b. Intensity of rivalry of previously

Empowerment Of Msme

1839 words - 8 pages Empowerment OF MSME INDEX: 1. What is MSME & Its role in country 2. Problem facing by MSME 3. Solution to the problem 4. Empowerment of macro & micro economy Empowerment of MSME The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro

In-N-Out Burger Final Marketing Plan Mkt 421

4415 words - 18 pages restaurants that would be used our initial sales promotion of our “Micro Menu” menu items. The three cities in California that would participants in our initial sales promotion would be in Oceanside, Murrieta, Santa Monica, CA. Each of these restaurants, are located in areas that heavily populated residential areas that have families, seniors, and young adults that either rent apartments or own their own homes. Additionally the three beta



Related Essays

Micro Finance Essay

5439 words - 22 pages institutions and poverty alleviation and development programmes to meet the needs of needy small and poor borrowers kindle the micro finance concept. The impact of micro finance programmes on reduction of poverty is considerably encouraging in many countries. Many studies have revealed that micro finance has made positive impact on some socio economic variables like empowerment of women and Schedule Caste and Scheduled Tribes, child education

Interpreting Micro Economic Conditions Essay

1315 words - 6 pages Indicators of Micro-economic conditions in economy (Quarterly). |Economic Indicators |Dec’2010 |Mar’2011 |Jun’2011 | |GDP Growth (In Billion) |14,755.0 |14,867.8 |14,996.8 | |GDP (Changes in %) |2.3

Political Micro Targeting & Ten Tribes

912 words - 4 pages Political Micro-Targeting What Decision Support Systems Did for Barack Obama On the day he took the oath of office, President Barack Obama spoke a word rarely heard in inaugural addresses— data— referencing indicators of economic and other crises. His use of the word is perhaps not so surprising. Capturing and analyzing data were crucial to Obama’s rise to power. Throughout his historic campaign he not only used the Internet for networking and

Micro Economic Essay

1877 words - 8 pages 1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money, the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality