1 2 (1) where A, a and b are positive constants. So the partial derivatives of a Cobb–Douglas production function are : M P1 = M P2 = ∂y = aAxa−1 xb 1 2 ∂x1 (2) ∂y = bAxa xb−1 (3) 1 2 ∂x2 The absolute value of the slope of an isoquant is the technical rate of substitution, or T RS. This T RS equals M P1 /M P2 so that (2) and (3) imply that T RS = M P1 ax1 = M P2 bx2 1 (4) Equations (2) and (3) imply that the Cobb–Douglas technology is monotonic, since both partial derivatives are positive
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that business transactions are separate from the transactions of the owners. For example, the purchase of a truck by the owner for personal use is not recorded as an asset of the business. (b) The unit-of-measure assumption requires information to be reported in the national monetary unit. That means that each business will account for and report its
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costs generally are for expensive machines necessary in the production process. Firms already in the industry can obtain monopoly profits in the long run because no competitors can raise the large amount of capital needed to enter the industry. 6. Economies of scale
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the price from $20 to $18? A) $10 B) $20 C) $30 D) $40 Answer: C 5. Refer to the above table. What is the change in total revenue if she raises the price from $10 to $12? A) –$300 B) +$300 C) +$120 D) –$120 Answer: D 6. A profit-maximizing firm should shut down in the short run if the average revenue it receives is less than: A) average variable cost. B) average total cost. C) average fixed cost. D) marginal cost. Answer: A 7. A pure monopolist which
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omiPENGANTAR ILMU EKONOMI I (Ekonomi Mikro) Oleh : Ramlan Ruvendi Sekolah Tinggi Ilmu Ekonomi Binaniaga Jl. Raya Pajajaran 100, Bogor ILMU EKONOMI Pengertian Ilmu Ekonomi • Scarcity (Kelangkaan) Alat pemuas kebutuhan manusia jumlahnya terbatas sementara kebutuhan manusia tidak terbatas. Choices (Pilihan-Pilihan) Terbatasnya alat pemuas kebutuhan manusia sementara kebutuhan tidak terbatas mendorong manusia melakukan pilihan-pilihan yang bersifat individu maupun kolektif. Opportunity Cost
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Chapter 9 Monopoly As you will recall from intermediate micro, monopoly is the situation where there is a single seller of a good. Because of this, it has the power to set both the price and quantity of the good that will be sold. We begin our study of monopoly by considering the price that the monopolist should charge.1 9.1 Simple Monopoly Pricing The object of the firm is to maximize profit. However, the price that the monopolist charges affects the quantity it sells. The relationship
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Gases and Atmospheric Chemistry: States of Matter and Gas Laws States of Matter: |State |Properties |Example | |Solid |Definite shape and volume | | | |Virtually incompressible |
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Assignment brief – QCF BTECAssignment front sheet | Qualification | Unit number and title | Level 3 | Unit 4 Business Communication | Learner name | Assessor name | | Mr. Soheil Arzanpour | Date issued | Hand in deadline | Submitted on | 18 October 2015 | 17 November 2017 | | | | Assignment title | | In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. | Criteria
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BTEC Level 3 Subsidiary / Diploma, Business Studies Unit 2 – Business Resources Assignment 1 (P1, P2, M2) – Recruiting the Right Staff Scenario You are coming to the end of your BTEC course and you have been considering getting a job in the summer break before you start university. As well as earning some extra money, you are looking forward to the opportunity to develop your skills and put into practice the knowledge you have learnt on your BTEC course. Task one (P1 part) Research
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4/14/2016 [Type the document subtitle] | Elodie Henry | Elasticity of demand | a) Explain the concepts of price elasticity of demand, income elasticity of demand, and cross elasticity of demand. In economics, demand elasticity refers to the responsiveness of demand due to changes in other economic variables. It is an important concept introduced by the economist A. Marshall, which helps firms to anticipate effects of changes in economic variables so as to adopt an optimal competitive
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