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.
Inefficiency may exist within a labor market while a firm only hires labor up to a certain point where: (w) the value of labor’s marginal product equals the wage rate. (x) VMP > MRC. (y) MPPL = w/P. (z) the last unit of labor adds as much to
Assume that male nurses are paid more than female nurses for same work. When an “equal pay for equal work” law is enforced and enacted, it may: (w) decrease the wages of male nurses. (x) not influence the wages of female nurses. (y) increa
Economists suppose that firms hire labor to further a fundamental goal of maximizing: (1) economic profit. (2) workers’ welfare. (3) economy-wide employment. (4) managerial compensation. (5) the total value of output.
All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training
The individual firm in a purely competitive labor market: (1) faces a perfectly elastic supply of labor at the equilibrium wage. (2) faces a perfectly inelastic supply of labor at the equilibrium wage. (3) has a perfectly elastic demand for labor at t
Illustrates the different between expert opinion method and trend projection method?
Reasons why workers are often paid more than they could make in their best alternative positions do not include: (1) human capital valued by many firms. (2) membership in a union along with a labor contract. (3) holding a minimum wage job when most unskilled workers a
Explain the cost concepts briefly.
Categorized the Positive income Elasticity?
When the hourly wage rate for workers this purely competitive firm hires is approximately of $13, this will operate at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. Discover Q & A Leading Solution Library Avail More Than 1427217 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1939802 Asked 3,689 Active Tutors 1427217 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1939802 Asked
3,689
Active Tutors
1427217
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!