The price of the typical cell phone has been going down in the past 10 years. What could explain this consistent drop in the price of these phones? Use the model for the long-run competitive firm to illustrate your answer (hint: you need two diagrams here: one showing the LAC for the typical firm, and another showing the long-run supply curve for the industry).One explanation is that the market for cell phones is a pecuniary economy, due to economies of scale. If that is the case, the diagram to represent the LAC for this market is given below.
What will be an ideal response?
Economics
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According to classical economists,
a. money was a "veil" that determined the nominal values in which such variables as the level of economic activity were measured. b. money can have a temporary impact on output. c. it is the nominal interest rates that matters in decisions to save and invest. d. Both a and b e. Both a and c
Economics
A monopsony will:
a. hire more workers than a competitive employer. b. pay a higher wage than a competitive employer. c. employ a quantity of labor where the marginal revenue product equals the marginal factor cost. d. all of these.
Economics