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What is the profit maximising condition? (Hard A-Level question for full marks)

With an understanding of total revenue and total variable cost curves, the marginal revenue (revenue gained form each one-unit increase in production) and marginal cost (cost incurred from each one-unit incr...
MB
Answered by Myles B. • Economics tutor
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What are the 4 main factors of production?

These are the inputs available to supply goods and services in an economy. Remembered by the acronym CELL - Capital, Enterprise, Land and Labour
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Answered by Georgia N. • Economics tutor
2312 Views

How can you calculate the Price and Quantity at a market equilibrium given the Demand curve P = 20 - Q and the Supply curve P = 3Q

To find the equilibrium point in a market you must make the supply and demand curve equal to one another. This means setting 20 - Q equal to 3Q and solving the simultaneous equations:20 - Q = 3Q20 = 4QQ = 5 ...
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Answered by Harry H. • Economics tutor
3015 Views

Explain how higher interest rates can impact the aggregate demand level in an economy and help close an inflationary gap?

Interest Rates changes can impact an economy in different ways. With higher interest rates, consumers are more prone to save (because they get more money in interests) and therefore they consume less. Furthe...
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Answered by Carlo D. • Economics tutor
2125 Views

Define the following terms: Absolute advantage; Comparative advantage.

Absolute advantage exists when a producer can produce a good using fewer factor inputs than another. A producer has a comparative advantage in the production of a good if the opportunity cost is lower than t...
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