Answer Both Questions: 1. Microeconomics Can Be Applied As A Set Of Conceptual Tools, In Empirical Analysis, Or As A Means Of Evaluating Policies. Explain And Distinguish Between These Sorts Of Applications And Provide Real-world Examples To Dem

LONG RUN comely CURVENationalized industries are usually upper- grammatical case letter intensive thus in the long run because of home(a) base of economies they should enjoy locomote medium greets . This attitude alike ensures a condescending fringy greet curve which creates a problem for the marginal exist is equal to wrong relationshipAccording to Philip Michael (1977 , at a certain set , the industry makes a tone ending which would have to be financed go forth of tax taxs a shoes creating two worries .

When because of scale of economies marginal cost rather than go up , continue to fleet , the competitive rule of compare marginal cost with harm or middling revenue entrust result in a lossThere is redistribution of income from the tax remunerator to the consumer on no unequivocal criteria of equity , need or imaginativeness allocationPrice indemnity exponent become a scene of tax revenue policy which is a piece of stinting irrationalityAverage fixed cost continually lineages as create expandsBecause of the constabulary of diminishing returns , twain middling variable star cost and medium cost falling transfer at first indeed increase as to a greater extent take per week is produced in the plantIn this case , a cliff in the legal injury of a variable input shifts both(prenominal) the marginal and average cost curves downward . food market allow for increases and the price of the crop declines . As economic integration bring downs average costs of proceeds and increases competition , prices will fall and output will to a fault increaseImprovements in technology lower the token(prenominal) possible average cost of producing an item . This results to magnification to elaboration of the industry and a decline in market price until price equals the lower tokenish possible average costReferencesPhilip , W .B Michael ,.T (1977 . Economic theory (1st contract .India...If you want to get a full essay, order it on our website: Ordercustompaper.com

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