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Selecting Output in Short Run
* We will combine production and cost analysis with demand to determine output and profitability.
A Competitive Firm Making Positive Profit Selecting Output in Short Run
* Production Decisions' summary
- Profit can be maximized when MC = MR
- If P > ATC firm is making profits.
- If AVC < P < ATC firm should generate at a loss.
- If P < AVC < ATC firm should shut-down.
The Short Run Output of Aluminum Smelting Plant
Demonstrate mathematically that the equilibrium condition MRS PB PA is the equivalent of the utility-maximizing rule MU AP A MU B PB .
Official Reserve Account: This part of the balance of payments informs us about how the balance of both current and capital accounts taken together is settled.Transaction in thi
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Estimating Occupational Structure of the Labour Force within Economic Sectors in the Target Year The total output in the economy, the sectoral shares therein and labour produc
Laspeyres index The Laspeyres index tells us that: - The amount of money at present year prices which an individual requires to purchase bundle of goods and services which w
Q1.Define law of demand. Distinguish between individual demand and market demand for Hitachi air conditioners. List the determinants of demand for the same.
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discuss the implications of various market structures(competitive and non-competitive)for price determination
Axioms: Revealed preference theory is based on the axioms listed below. • Consumer will spend all her income on goods. The consumer equilibrium always remains on the budg
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