Negative-positive coefficient in cross-elasticity of demand
When you compute cross-elasticity of demand, what are you trying to find out? What do a negative coefficient and a positive coefficient imply?
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You are trying to find out whether pair of goods is complements or substitutes. A negative coefficient implies a substitute when a positive coefficient implies a complementary good.
I have a problem in economics on Calculating Firms accounting profit. Please help me in the following question. The firm has $50,000 in implicit costs, and the economic profit of $10,000. This firm’s: (i) Explicit cost equivalent $40,000. (ii) Accounting profit
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