« previous next »

Author Question: Define the elasticity of supply and show how it is calculated. What will be an ideal ... (Read 44 times)

Mr. Wonderful

  • Hero Member
  • *****
  • Posts: 866
on: Jun 29, 2018
Define the elasticity of supply and show how it is calculated.
 
  What will be an ideal response?

Question 2

Why are losses acceptable in the short run but not the long run?
 
  What will be an ideal response?
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


anoriega3

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

The elasticity of supply measures the responsiveness of the quantity supplied to a change in the price of a good when all other influences on selling plans remain the same. The elasticity of supply is calculated by the percentage change in the quantity supplied divided by the percentage change in the price.

Answer to Question 2

Losses are acceptable in the short run because even if it is not possible to make a normal or economic profit the goal is to minimize losses. In the short run this would happen when the price is below average total cost but still above average variable cost. In the long run the goal is to make at least normal economic profit. Since this is the minimum that one would expect to earn in the long run losses are not acceptable.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa
Some drug labels show the USP symbol; others do not. Some drug labels show the USP symbol; others do not.
Age Differences in Attention to a Puppet Show Video Age Differences in Attention to a Puppet Show Video
Cultures Ideal Body Types Cultures Ideal Body Types
Blood Supply to the Lungs Blood Supply to the Lungs
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Types of Transport - Uniport, Antiport and Symport (Glucose and Na+K+ Transporters)

For a complete list of videos, visit our video library