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Explain why the marginal cost curve intersects the average cost curve at its minimum point?

Marginal cost (MC) is the extra cost incurred when one extra unit of output is produced. Average product (AC) is the total cost per unit of output. When the MC is smaller the AC, the AC decreases. This is be...
DN
Answered by Diveena N. • Economics tutor
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Should the government intervene in cases of market failure?

The benefits of government intervention are largely dependent on the type of government intervention and the form of market failure it hopes to correct, however it is normally beneficial for the government t...
GF
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Explain why a firm in perfect competition can not experience abnormal profit in the long run.

Perfect competition is a market structure in which an infinite number of firms produces identical products for an infinite number of consumers. It is an ideal and theoretical model. Abnormal (supernormal/eco...
BV
Answered by Bianca V. • Economics tutor
46793 Views

Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand.

Indirect tax - Taxes imposed by the government on goods and services aka expenditure tax. Price Elasticity of Demand - a measure of the relationship between a change in the quantity demanded of a particular ...
VO
Answered by Voke O. • Economics tutor
22630 Views

Under what conditions can a firm sell the same product at different prices?

Firms practice price discrimination when firms sell the same product at different prices. Price discrimination involves charging higher prices to less price sensitive consumer and lower prices to more price ...
MA
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