« previous next »

Author Question: Define the elasticity of supply and show how it is calculated. What will be an ideal ... (Read 58 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?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

A microsatellite locus can show linkage to a disease gene A microsatellite locus can show linkage to a disease gene
If you want to show differences between items at the same time, a bar graph is more effective than a If you want to show differences between items at the same time, a bar graph is more effective than a
The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
What are examples of ideal forms? What are examples of ideal forms?
Chem problem calculated Chem problem calculated
If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas? If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas?
Video: Physiology of Asthma

For a complete list of videos, visit our video library