Answered: On what stage of the business cycle is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On what stage of the business cycle is the US economy?

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Economics as a subject deals with the allocation of scarce resources among humans with unlimited wants. For production, raw materials are used as inputs and processes through machinery using physical labour to convert into finished products. This is then taken to the market and buyers and sellers come to an exchange agreement at a particular price.

When producers plan their costs for production, it is done in such a way that they imply two types of costs. The fixed cost is the cost of maintaining the production unit, the machinery etc which is the costs that the producer will bear even if the producer is not producing any goods.

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