Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Diminishing Marginal Utility
Diminishing marginal utility as well is to be held responsible for the rise in demand for a product when its price declines. When an individual purchases a product, he swaps his money revenue with product in order to increase his satisfaction. He continues to buy goods and services as long as marginal utility of money (MUm) is lesser than marginal utility of commodity (MUC).
Given the price of a commodity, he modifies his purchase so that MUC = MUm. This plan works well under both Marshallian assumption of constant MUmand Hicksian assumption of diminishing MUm. When price falls, (MUm = Pc) < MUC. So, equilibrium state is upset. To get back his equilibrium state, i.e., MUm = PC, = MUC, he purchases more quantities of the commodity. For, when supply of a commodity rises, its MU falls and once again MUm = MUC. For this reason, demand for a product increases when its price falls
In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits. If neither of you advertises, your rival will make RM4 million and you w
Explain about the Pricing analysis Microeconomic methods are employed to examine lots of pricing decisions. This includes transfer pricing, price discrimination, joint product
NATIONAL INCOME AND STANDARDS OF LIVING Standard of living refers to the quantity of goods and services enjoyed by a person. These goods may be provided publicly, such as in t
Q. Explain about Frequency domain? Frequency domain: Frequency domain is a term which is used to elucidate the domain for analysis of mathematical signals or functions with
Q. Types of production function? Production function is of two different forms: The variable proportion production function The fixed proportion production functio
p=10, TC= 1000+2Q+.01Q^2, Q=?
what are the instruments variable of marrise''s model?
SHORT RUN EQUILIBRIUM OF THE FIRM A firm is in equilibrium when it is maximizing its profits, and can't make bigger profits by altering the price and output level for its prod
Effectiveness of Trade Unions in Developing Countries Trade Unions in developing countries tend to be less effective in their wage negotiations with employers than their count
a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd