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ECONOMICS: November 2007
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Theory of Cost and Theory of Firm. Wednesday, November 28, 2007. A firm is a monopoly if. It is the sole seller of its product. Its product does not have close substitute. The market has barriers of entry. Three sources of bariers of entry. A single firm owns a key resource. The govt gives a single firm the exclusive right to produce the good. Costs of production make a single producer more efficient than a large number of producers. Sunday, November 25, 2007. Theory of Cost and Theory of Firm. Competiti...
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ECONOMICS: September 2007
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Economics - Quiz1 Prep. Saturday, September 15, 2007. Assignment 5 – Principles of Economics. If the price ceiling is above the equilibrium price, the price ceiling is not binding. Market forces will naturally move the economy to the equilibrium and there will be no effect on price or quantity sold as a result of the price ceiling. The producers benefit from this policy because they will produce the Qs quantity and can sell that to government at the floor price to increase their total revenue. The co...
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ECONOMICS: Session 7
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Monday, October 15, 2007. 8721;(Xi-X)(Yi- Y ). B(HAT)*- - - - - -. Coefficient of determination = ESS/TSS= ∑(Y(HAT)-Y(BAR). 1 X and Y are substitutes. 2 X and Y are complements. 3 X is a luxury good. 4 X is a inferior good. Here cross price elasticity = -0.8, Since it is negative it means if Price of Y decreases, quantity demanded of X increases. Hence they are complements. In the multiplicative model, elasticity is constant. Subscribe to: Post Comments (Atom). View my opinions and please comment @ Mopine.
menomics.blogspot.com
ECONOMICS: October 2007
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Monday, October 15, 2007. 8721;(Xi-X)(Yi- Y ). B(HAT)*- - - - - -. Coefficient of determination = ESS/TSS= ∑(Y(HAT)-Y(BAR). 1 X and Y are substitutes. 2 X and Y are complements. 3 X is a luxury good. 4 X is a inferior good. Here cross price elasticity = -0.8, Since it is negative it means if Price of Y decreases, quantity demanded of X increases. Hence they are complements. In the multiplicative model, elasticity is constant. Subscribe to: Posts (Atom). Access marketing Quiz prep @ Marketing Quiz 2.
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ECONOMICS: Theory of Cost and Theory of Firm
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Theory of Cost and Theory of Firm. Sunday, November 25, 2007. Theory of Cost and Theory of Firm. Fixed costs are those which do not vary with the quantity of output produced. Variable costs are those which vary with the quantity of output produced. For any firm Average revenue is the demand curve. How? AR = TR/Q = PXQ/Q = P(which is nothing but the demand curve). Practice the various cost curves(ATC,AVC,AFC,MC). Marginal cost average total cost, average total cost is rising. See the explanantion below.
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ECONOMICS: Theory of production
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Theory of Cost and Theory of Firm. Tuesday, November 20, 2007. Opportunity cost is of two types. Explicit -incurred due to factors of production, requires outlay of money. Implicit - Does not require outlay of money. An important implicit cost is the cost of capital. Accounting profit = Revenue - explicit cost. Economic profit = Revenue - (Explicit Implicit cost). Accounting profit Economic profit. Sunk costs are costs. Production function is the correspondence between input and output. 1 − α. The produc...
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ECONOMICS: August 2007
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Economics - Session 4. Economics - Session 2. Saturday, August 25, 2007. 1 Explain each of the following statements using supply-and-demand diagrams. A) "When a cold snap hits florida,the price of orange juice rises in supermarkets throughout the country.". B) "When the weather turns warm in New England every summer,the price of hotel rooms in Caribbean resorts plummets.". C) "When a war breaks out in the Middle East,the price of gasoline rises,and the price of a used Cadillac falls.". 2 The supply curve...
