|
KINKED-DEMAND CURVE: A demand curve with two distinct segments with different elasticities that join to form a kink. The primary use of the kinked-demand curve is to explain price rigidity in oligopoly. The two segments are: (1) a relatively more elastic segment for price increases and (2) a relatively less elastic segment for price decreases. The relative elasticities of these two segments is directly based on the interdependent decision-making of oligopolistic firms.
Visit the GLOSS*arama
|
|
|
|
Lesson 4: Production Possibilities | Unit 4: Analysis
|
Page: 16 of 24
|
Bundles outside the curve can be achieved through economic growth. Economic growth is the process of increasing the economy's ability to produce goods and expand the production possibilities curve. - Bundle M cannot be reached with existing resources and technology and the current production possibilities frontier.
- The production possibilities frontier only represents a current boundary.
- Expanding resources and technology gives us economic growth. Specifically, we can increase the quantity or quality of resources.
|
|
|
|
|
|
PERFECT COMPETITION, SHUTDOWN A perfectly competitive firm is presumed to shutdown production and produce no output in the short run, if price is less than average variable cost. This is one of three short-run production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and loss minimization (if price is greater than average variable cost but less than average total cost).
Complete Entry | Visit the WEB*pedia |
|
|
GREEN LOGIGUIN [What's This?]
Today, you are likely to spend a great deal of time surfing the Internet wanting to buy either a how-to book on building remote controlled airplanes or an extra large beach blanket. Be on the lookout for slow moving vehicles with darkened windows. Your Complete Scope
This isn't me! What am I?
|
|
The average bank teller loses about $250 every year.
|
|
"Inside the ring or out, ain't nothing wrong with going down. It's staying down that's wrong. " -- Muhammad Ali
|
|
AEC Annual Equivalent Costs
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|