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Problem:
i) What do you meant by the term ‘economic efficiency'?
ii) By using appropriate examples differentiate between fixed and variable costs.
iii) Consider different markets explain how a given firm can increase its overall profitability by pure manipulation of its pricing policy?
iv) A perfectly competitive firm is better than a monopolistic firm in terms of economic efficiency. Discuss.
v) Explain the measures governments can use to control monopolies.
Economic Reforms and Foreign Investment Inflows: A major objective of economic reforms was to increase foreign investment, which helps to increase capital formation of the eco
A consumer purchases food (X) and clothing (Y). Her utility function is given by: , income is $100 and the price of food is $1 and the price of clothing is Py. a. Derive the equ
Q. Perfect Competition in neoclassical economics? Perfect Competition: An abstract assumption, central to neoclassical economics, in that companies are so small that none can i
the meaning of supply
Deviation - Difference between the expected and actual payoff - Adjusting for the negative numbers - The standard deviation measures square root of average of squa
What is the difference between 'Capital' and 'Capital value'? "The total amount of money or other resources owned or used to obtain future income or benefits." On the other h
implications of market structures on price determination
1. Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. Also, the firm ha
In the diagrams related to bandwagon effect, why do we say when the price is 30$ the demand is 40?
Problem: (a) Why is an error term added to a regression and explain its importance in the OLS procedure? (b) Suppose we have a linear equation with a constant term, one expl
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