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Where on a firm diagram would a firm be at a profit maximising equilibrium?

A profit maximising equilibria is one in which the firm maximises overall profit over all other potential outcomes. The point at which the firm is maximising profit is where marginal revenue intersects margi...
HC
Answered by Harry C. • Economics tutor
2208 Views

Evaluate policies which a government in a developed country might pursue to increase the size and productivity of its working population. 15 marks

The government could increase the size of its working population through supply side policies such as spending on education and training. If more people are educated and trained, then there will be a reducti...
JA
Answered by Jerin A. • Economics tutor
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In November 2017, the Bank of England raised interest rates for the first time in 10 years, increasing the base rate from 0.25% to 0.5%. Please highlight a possible effect of this change on Aggregate Demand in the UK's economy.

One possible effect of this change in interest rate is a decrease in aggregate demand. As interest rates are inversely linked to investment, a component of aggregate demand responsible for approximately 15% ...
JH
Answered by Josh H. • Economics tutor
2512 Views

Why is the marginal return curve twice as steep as the average revenue curve in microeconomics firm theory?

The average revenue is the demand curve, revenue is calculated by q*p, so (a+q)q = aq-q^2, the marginal revenue is the rate of change in the revenue so if we differentiate wrt q, we get a-2q, which illustrat...
JN
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Evaluate relative merits of monetary and fiscal policy measures for governments wanting reduced unemployment in the UK. (20 marks)

Introduction - definitions of monetary policy, fiscal policy, and unemployment. Monetary policy is expansionary - rate of interest decreased, value of savings decreased, spending increased, borrowing increas...
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Answered by Kira B. • Economics tutor
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