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LOSS MINIMIZATION RULE: A rule stating that firm minimizes economic loss by producing output in the short run that equates marginal revenue and marginal cost if price is less than average total cost but greater than average variable cost. In the short run, a firm incurs total fixed cost whether or not it produces any output. As such, if the market price is falls below average total cost, it must decide if the economic loss from producing the quantity of output that equates marginal revenue and marginal cost is more or less than the economic loss incurred with shutting down production in the short run (which is equal to total fixed cost).
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STABLE EQUILIBRIUM: An equilibrium that is restored if disrupted by an external force. This should be contrasted with unstable equilibrium. Most equilibria studied in economics are of the stable variety. The most common example is market equilibrium. Should the existing market equilibrium be disrupted by a change in one of the demand or supply determinants, the resulting shortage or surplus causes the price to change, which causes changes in quantity demanded and quantity supplied needed to restore equilibrium. The new equilibrium may by, and probably is, at a different equilibrium price and quantity, but it is equilibrium, and it will remain there until disrupted by an external force. See also | equilibrium | unstable equilibrium | disequilibrium | market equilibrium | demand determinants | supply determinants | shortage | surplus | equilibrium price | equilibrium quantity |
Recommended Citation:STABLE EQUILIBRIUM, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: January 15, 2025].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: stable equilibrium
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MARGINAL PROPENSITY TO IMPORT The change in imports purchased from the foreign induced by a change in income or production (national income or gross domestic product). The marginal propensity to import (abbreviated MPM) is another term for the slope of the imports line and is calculated as the change in imports divided by the change in income or production. The MPM plays a role in Keynesian economics. It augments the slope of the aggregate expenditures line and is part to the multiplier process. A related marginal measure is the marginal propensity to consume.
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YELLOW CHIPPEROON
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Today, you are likely to spend a great deal of time at a going out of business sale seeking to buy either storage boxes for your family photos or a large, stuffed giraffe. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
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A communal society, a prime component of Karl Marx's communist philosophy, was advocated by the Greek philosophy Plato.
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"My philosophy of life is that if we make up our mind what we are going to make of our lives, then work hard toward that goal, we never lose - somehow we win out." -- President Ronald Reagan
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NYCE
New York Cotton Exchange
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