Demand elastic- inelastic or unit elastic, Microeconomics

Assignment Help:

Questions

(i)   You are an industry analyst. Last year, the production cost of Microprocessor increased remarkably due to labor unionization. Nevertheless, the industry experienced a sharp increase in total revenue. How do you explain this? The demand did not change. You must use a diagram to answer this question.

(ii)  5% decrease in price caused only 1% increase in total revenue. Is demand elastic, inelastic, or unit elastic? Explain.

(iii)  Suppose one and only one worker is always required to operate one machine, and together they produce 100 units of output. Let's denote the number of worker by L and the number of Machine by K. What is the production function at this firm?

 

 


Related Discussions:- Demand elastic- inelastic or unit elastic

Government Stimulus Package, The government decides to implement a new econ...

The government decides to implement a new economic stimulus package targeted at American Farmers. The stimulus package gives every household a $300 prepaid credit card that may on

What are economic and social costs of high inflation level, What are the ec...

What are the economic and social costs of high inflation levels? High inflation will have serious redistribution costs; make distortions to the economy; decrease international

Egyptian Labor Market.., How to use Demand and Supply tools to analyze the ...

How to use Demand and Supply tools to analyze the case of the Egyptian labor market?

Allocative efficiency, Allocative Efficiency The production of product...

Allocative Efficiency The production of products and services such that stages of production are closely tied to levels of customer demand.

Explain the term economic efficiency, Explain the term economic efficiency?...

Explain the term economic efficiency?  Answer:   Economic Efficiency means full utilization of all available resources in economy i.e. to produce the needed amount of goods and

Policies for technological advance, Policies for Technological Advance ...

Policies for Technological Advance Without better technology, increases in capital stock generated by investment rapidly run into diminishing returns. And without improvements

Central problem of economy, explain the central problem of economy with p...

explain the central problem of economy with production possibility curve?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd