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This question can be split up into 2 parts. What it is asking for firstly is an outline of what theory says should happen. As the question starts with the word comment, the second part will involve som...

At the beginning of their course most A-level students fall into the trap of thinking a good evaluation point is one which completely contradicts or negates their previous argument. That is not the case. ...

Supernormal profits are made when Total Revenue is greater than Total Costs. When no supernormal profits are made Total Revenue = Total Costs, (it therefore follows that Average Revenue = Average Costs).I...

The demand for a good which is elastic will react significantly to a change in price of a good. So if I was selling mars bars in a shop ( and mars bars were an elastic good) if I incre...

This a fundamental for theory of the firm. It explains the shape of the marginal product (MP) curve!

Formal Definition: When one or more factors are held fixed, there will come a p...