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Q1. From the price elasticity calculated above we can say that if the price of x increases by 10% then its demand will fall by 3.87% approx. Since the elasticity of demand is inelastic, total revenue test of elasticity states that total revenue will increase as price increases.
Q2. With the statement are you agree or disagree: "A monopolist constantly charges chief possible price."? Explain. Why an individual firm cannot raise its price by reducing output - lower its price to increase sales quantity in a purely competitive market?
Q3. In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
while average labor productivity increases at the same rate as it did during 1960-2009. Under this scenario, what would be the net change in real GDP per person between 2009 and 2058?
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Explain why time management, communication and motivation are given more importance in the project management environment in contrast to traditional management environment.
An individual, who has income I, cares only about two goods: X and Y. Their prices are Px and Py, respectively. The individual's utility function is U(X,Y)=aln(X)+(1-a)ln(Y).
Write an explanation for an interrogatory senator outlining Explain how your expansionary acts would operate and illustrate what would be effects on economy.
Why could you say that supply-side economics is really more about after-tax wages and after-tax returns on investment than is about tax rates?
q.what is the relationship between states that have stricter gun control laws and the crime rate?you will need to
Assume that there are two categories of goods: protein shakes and all other products. A. Show using diagrams how a consumer's demand curve for protein shakes can be derived from an indifference map and a budget constraint diagram. Make sure you expla..
Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
Write an equation for a typical production function also illustrate what every of the terms represents.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
What explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product.
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