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Short notes on Sunk cost, Economies of scope and Expansion path. Write notes on 3 of the subsequent: Sunk Costs; Economic costs; Expansion Path and Economies of Scope.
Draw a production set in two dimensions (single input and single output) which exhibits decreasing returns to scale, but is not convex.
Find the market clearing price and quantity. Illustrate what are the price elasticity of demand and supply at this price and quantity.
Do you think these companies would welcome congressional legislation which restricted the amount which any one company could spend.
Graphing demand function and calculating loss of consumer surplus. Suppose you are in charge of a toll bridge which is essentially cost free.
Explaining efficient allocation of resources in competitive market and unregulated competitive market. "Most commercial fish species in nearly every ocean and sea are being rapidly depleted.
Discuss the subsequent excerpt from a recent story in the Wall Street Journal (May 4, p.1). In your discussion demonstrate which you can use the concepts.
Proving which the consumer maximizes utility when MRSxy =PX/ PY. True, false or uncertain "For any two goods X and Y, the consumer maximizes utility when MRSxy =PX/ PY. You must see relevant diagram
Illustrate what do you predict will happen to the structure of competition and to the price in this market when the patent expires.
Why is it not surprising to find which in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the companies change prices simultaneously, even if there is n
Classifying the utility functions as risk loving, risk neutral or risk averse. Shaqueena's utility function is given by U= I1/2, where I represents annual income in thousands of dollars.
Discussion on income and substitution effect. For all goods the substitution and income effect is the same. Discuss with the aid of suitable diagrams.
Suppose a production function is given by F (K, L) = K1/2 L1/2 the price of capital is $10 and the price of labour is $15. Find the equation of the expansion path. Find K* and L* for 1000 units of o
Derivation of AVC and MC function. A company's total cost function is given.
Find production functions exhibit decreasing, increasing and constant returns to scale. Do the subsequent production functions exhibit decreasing, decreasing or constant returns to scale.
Obtain the company's supply function and equilibrium price and output. There are 10 identical companies which have the common cost function c(y) = y2 + 9 the company demand function is given by X (P
Illustrate what will the equilibrium quantity be. Illustrate what will the new equilibrium price be. Illustrate what determines the burden of taxation.
Explain the intuition behind the rule of thumb for pricing. If the elasticity of demand is -5 and the marginal cost is $20 per unit, illustrate what should the price be.
Illustrate what would output be if DD acted like a perfect competitor and set P=MC. Illustrate what is the deadweight loss of the monopoly.
Suppose two identical companies capable to produce widgets and they are the only companies in the market.
Illustrate what are price, output, profits marginal revenue and deadweight loss (in each market) if the monopolist can price discriminate.
Derive the company's supply function. Derive the company's equilibrium price and output. Illustrate what is the output of each company.
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying among the two cities. Evaluate from a short-run and long
Suppose there are 500 identical companies in this company, which they have identical cost data as the company above, and which the company demand schedule is as follows.