Economics

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

Price ceilings reduce economic surplus by wasting manufacturer surplus and preventing any additional surplus for the consumers. It reduces manufacturer surplus because the producer cant sell at equilibrium price which causes the value of production to be coerce down. This creates less production of the regulated item. For consumer surplus, the very low price of the product provide drive demand up moreover with the decrease in supply for the product, the consumer will be futile to consume much of that good. Price ceilings therefore create inanimate weight dismission because of all the prod uct that isnt organism utilized.If you want ! to press a full essay, order it on our website: OrderCustomPaper.com

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