Explain the Expenditure Method of Measurement of Elasticity
Explain the Expenditure Method of Measurement of Elasticity.
Expert
Expenditure or Outlay Method: Expenditure method was developed through Marshall. In this method, the elasticity is measured through estimating the changes in whole expenditure like a result of changes in price and quantity demanded. It has three components.
When the price changes but whole expenditure remains constant then unit elasticity exists.
When the price changes but whole expenditure moves in the opposite directions then demand elastic is (>1).
When the price changes and whole revenues moves in similar direction, demand is inelastic (<1).
It can be expressed by the given diagram.
A purely competitive firm which hires more workers while the value of the marginal product of labor increases above the competitively set wage rate will absolutely experience increases in its: (i) overhead costs. (ii) profit per unit.
Describe the term Incremental Revenue in details.
This illustrated graph indicates that, there on average, rate of return to education is greatest for finishing the previous year of: (1) kindergarten, at point a. (2) grade school, at point b. (3) high school, at point c. (4) undergraduate college, at
When a firm is a price taker in the sale of its product, in that case labor’s: (w) ARP (Average Revenue Product) = MRP. (x) ARP = VMP. (y) VMP > MRP. (z) VMP = MRP. Can someone explain/help me with best so
If a perfectly competitive firm determines that its market price is below its minimum average variable cost, this will sell: w) the output where marginal revenue equivalents marginal cost. x) any positive output the entrepreneur decid
When labor was free, in that case this purely competitive firm as in illustrated graph would hire. (1) 600 workers. (2) 700 workers. (3) 800 workers. (4) 900 workers. (5) 1000 workers. Q : Price and output decisions in Illustrates the price and output decisions in Monopolistic Competition?
Illustrates the price and output decisions in Monopolistic Competition?
On-job training, there a college education, as well as leadership skills is all illustrations of: (w) financial capital. (x) human capital. (y) investment. (z) economic capital. Hey friends please give your opinion for the problem
The market supply of labor is the sum of the: (1) quantities of labor supplied by households at each wage. (2) wages paid to households for each quantity supplied. (3) quantities demanded by firms at each wage. (4) marginal products of labor at each l
What are the differences between differential cost and explicit cost?
18,76,764
1929090 Asked
3,689
Active Tutors
1423484
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!