when ac is more than mc at qty Q
then Q is
a.long run eqb qty of firm
b.long run eqb qty of industrty
c. less than long run eqb
d. more than long run eqb
check consistency of following
as price falls, dd rises
as dd rises, price rises
explain triangular settlement of trade between china, india and great britain..
under what condition of duopoly , price do not change when there r small change in the overhead costs..??
a.cournot
b.kinked dd curve solution
c. stackelberg
d.mkt share soln
First one is not neccessarily true.
One has the giffen goods case as an exception.
So depends on the relative strength of Income and Substitution effect.
check consistency of following
as price falls, dd rises
as dd rises, price rises
as price falls, dd rises : this is about law of demand, consistent with downward sloping demand curve.
as dd rises, price rises : this is about what happens to the equilibrium price when demand shifts up due to some exogenous factors. This would lead to rise in price if supply function is not affected.