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user cost of capital economic depreciation interest ratevalue of capital- example an airline buys boeing 737 for 150 million with the expected life
labortotal output 130 250 360 475 580 aif the price of the firms output is 12 per unit and the wage rate is 100
labor productivity - labor productivity and standard of living- consumption can increase if productivity increases- determinants of productivity
the technology of production the production process- combining inputs or the factors of production to attain an output categories of inputs
1assume that malaysia can produce cencaluk at 25 bottles per worker and belacan at rm5 per worker assume that indonesia can produce 10 bottles of
the value of title insurance while buying a house a scenario- price of house is 200000- 5 chance that seller does not own house risk neutral
insurance- risk averse are willing to pay to keep away from risk- if cost of insurance equals expected loss risk averse people will buy sufficient
diversification - assume that a firm has a choice of selling air conditioners heaters or both of them- the probability of it being hot or cold is
reducing riskthree methods consumers attempt to reduce the risk are 1 diversification 2 insurance 3 collecting more
business executives and choice of risk example- study of 464 executives found that 20 persons were risk neutral 40 persons were risk takers 20
preferences toward risk choosing among risky alternatives- assume- consumption of a single commodity- the consumer knows all probabilities- payoffs
variability- the extent to which the possible outcomes of uncertain event may vary variability a scenario- assume that you are choosing between two
expected value- the weighted average of payoffs or values resulting from all the possible outcomes the probabilities of every outcome are used as
describing risk to measure risk we should know 1 all the outcomes which are possible 2 the probability that each outcome will occur
network externalitiestill this point we have assumed that peoples demands for good are independent of each otheractually a persons demand can be
problems using point elasticity- we may need to compute price elasticity over portion of demand curve instead of at a single point- the price and
substitution effect- the substitution effect is change in an items consumption associated with the change in the price of the item level of
income and substitution effectsa fall in price of a good has the two effects substitution amp income-substitution effectconsumers will tend to buy
individual demandsubstitutes and complements1 the two goods are considered substitutes if an increase decrease in price of one lead to an increase
using the indifference curve approach explain why the demand curve slope downwards from left to right is there any
assume there is a remote area in china with high populationthe area is composed exclusively of apartments and is populated by low-income residents
how do you draw the demand curve q 100 - 50p and indicate which portion of the curve is elastic which is enelastic and which is unit
for the pizza seller whose marginal average variable and average total cost curves are shown in the following diagram what is the profit-maximizing
i want to address inflation in pakistan but it itself is a wide topic plz suggest me how to address inflation to right a research
chapter 13 perfect competition and the supply curve 1 joe browns dairy operates in a perfectly competitive marketplace joes machinery