Weak axiom of revealed preference
When prices are ($2, $10), Emil chooses the bundle (1, 6), and when prices are ($12, $4), he chooses the bundle (7, 2). Is Emil's choice of bundles consistent with the Weak Axiom of Revealed Preference?
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A quality control inspector selects a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested. Find the number of possible of outcomes of this experiment regarding two parts?
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Based on the best available econometric estimates, the market elasticity of demand for your firm's product is - 1.50. The managerial cost of producing the product is constant at $75, while average total cost at current production levels is $200. D
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