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Explain the terms 'compensating variation' and 'equivalent variation' of a price change with diagrams. Under what circumstances would the two measures coincide?
500 Words.....
If I produce 20,001 copies my total cost will rise to $750.02, therefore my marginal cost of producing copies must be increasing.” Draw a graph to illustrate your answer.
Boris budgets $9 weekly for his morning coffee with milk. He likes it if it is prepared with 4 parts coffee, 1 part milk. (Milk and coffee are perfect complements here). Coffee costs $1/oz, and milk $0.5/oz. Draw his budget constraint and indifferenc..
Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is.
Discuss the positive aspects of globalization, and contrast these with the negative aspects of globalization from the perspective of a small business.
Using derive the least square estimators. Where the lower case letters represent deviation from the variable’s mean. If you use upper case notation then the estimators become:
Price elasticity of demand is an important tool for managers in a selling environment in decision what to put on sale. Discuss how managers of over the counter health care products could use the concepts of elasticity to maximize profit.
What are the key contributions of small business to the U.S. economy? Rank the benefits in terms of importance, and provide the reasons for your ranking.
explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average t..
Find the optimal (x, y, λ) for max u(x,y)= kx^ay^b s.t. PxX+PyY = m, in terms of the parameters of the model. Prove that the optimal (x,y, λ) is indeed a maximum. Comment
illustrate what proportion of the population would score higher than Bob.
Classify each of the following situations as either frictional, structural, or cyclical unemployment.
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