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!
Price Elasticity at Terminal Points
The price elasticity at terminal point N equals 0 means that at point N, e = 0. At terminal point M, although, price-elasticity is undefined, however most texts show that at terminal point M, e = ∞. According to William J. Baumol, a Nobel Prize winner, price elasticity at upper terminal point of the demand curve is undefined. It is undefined since measuring elasticity at terminal point (M) includes division of zero and division by-zero is undefined. In his own words, 'Here elasticity isn't even defined since an attempt to evaluate thefraction p/x at that point forces us to commit the sign of dividing by zero. The reader who has forgotten why division by zero is immoral can recall that division is the reverse operation of multiplication. Since in seeking the quotient c = a/b we look for a number, c that when multiplied by b gives us the number a, which is, for which cb = a. But if a isn't zero, say a = 5 and b is zero, there isno such number since there is no c such that c x 0 = 5".
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
Illustrate about Demand theory Demand theory is one of the core theories of consumer behaviour andmicroeconomics. It attempts at answering questions regarding the magnitude of
howw much should the firm produce to maximize its profits
What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev
The demand curve for the product of a monopolist is a straight line such that quantity just falls to zero at a price of Rs 20 per unit and that the maximum quantity (at zero price)
The Consumption Function The consumption function is the relationship [expressed in mathematical or diagrammatic form] between planned consumption and other independent varia
CLASSICAL VIEW ON UNEMPLOYMENT The classical economists as we observed in Unit 1 of this course, were of the view that full employment prevailed in the economy all the tim
TYPES OF UNEMPLOYMENT A person can be either in the labour force or not in the labour force of an economy. The person not included in the labour force includ
neoclassical thinking assumes that all firms are established to make profit has been challenged by managerial discretion model.How successful have been these models to maximize pro
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