E.g. estimating labor cost 1 person p/m could represent avr. 5 function points Weightings used to find total no. function points Learning curves Projects needing same tasks‚ or product repeated several times Repetition improves performance time Time reduction of task performance can be predicted Improvement pattern counted in “learning curve” Reasons for Adjusting Estimates Interaction costs hidden in est. Normal conditions don’t apply Things go wrong on projects Changes
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approach would suggest that Genetics or Nature determines a babies characteristics and intelligence‚ not social environment. The Bell Curve Along these lines‚ “The Bell Curve Study” also suggested that some racial groups of people were more intelligent than others or were genetically inferior. Context and Intelligence Critics of the the “Bell Curve Study suggests that the test used was culturally biased. In others words‚ contextually based. For instance‚ an expert in any given
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Natural rate of unemployment The natural rate of unemployment (sometimes called the structural unemployment rate) is a concept of economic activity developed in particular by Milton Friedman and Edmund Phelps in the 1960s‚ both recipients of the Nobel prize in economics. In both cases‚ the development of the concept is cited as a main motivation behind the prize.[1][2] It represents the hypothetical unemployment rate consistent with aggregate production being at the "long-run" level. This level
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6.1 Risk Structure of Interest Rates 1) The risk structure of interest rates is A) the structure of how interest rates move over time. B) the relationship among interest rates of different bonds with the same maturity. C) the relationship among the term to maturity of different bonds. D) the relationship among interest rates on bonds with different maturities. 2) The risk that interest payments will not be made‚ or that the face value of a bond is
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consuming each possible bundle of goods. T h e t y p i c a l w e l l-b e h a v e d s t r u c t u r e o f u t i l i t y o f b u n d l e s i s o f f e r e d b y indifference curves‚ i.e. all bundles giving the same level of utility to the consumer. Here below you can see two indifference curves: the higher indifference curve is characterised by a higher level of utility. Now‚ we should consider - at the same time - both the budget constraint (the
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the indifference curve as a graph showing different bundles of goods between which a consumer is indifferent. That is‚ at each point on the curve‚ the consumer has no preference for one bundle over another. One can equivalently refer to each point on the indifference curve as rendering the same level of utility (satisfaction) for the consumer. Utility is then a device to represent preferences rather than something from which preferences come. The main use of indifference curves is in the representation
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takers (no exertion over product price) d. Free entry and exit in and out of the market e. Individual firms have a perfectly elastic demand curve‚ but whole industries that represent a market do not have a perfectly elastic curve (market demand) f. Ask Kaibara 4) Competitive firms are assumed to: a. See Problem 3 b. Ask Kaibara 5) The demand curve faced by a purely competitive firm: a. Is completely horizontal‚ meaning perfectly elastic‚ because a purely competitive firm cannot change the
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Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 1 / 28 Outline 1 Utility: Getting Satisfaction 2 Budgets and Optimal Consumption 3 The Optimal Consumption Choice 4 Spending the Marginal Dollar 5 From Utility to the Demand Curve Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 2 / 28 The Rational Consumer One of the key assumptions underlying economics is the concept of the rational consumer Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 3 /
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Besanko & Braeutigam – Microeconomics‚ 3rd edition Solutions Manual Chapter 8 Cost Curves Solutions to Review Questions 1. The long-run total cost curve plots the minimized total cost for each level of output holding input prices fixed. In other words‚ for a given set of input prices‚ the long-run total cost curve represents the total cost associated with the solution to the long-run cost minimization problem for each level of output. When the price of one input increases‚ the isocost line
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some increasing marginal utility at first‚ but every good or service at some point provides decreasing additional utility (or diminishing marginal utility). When the total utility curve stops increasing at an increasing rate and starts increasing at a decreasing rate‚ that is the point where the marginal utility curve reaches its max and starts decreasing -- this is the point of diminshing marginal utility. Let me give you another example‚ if you had no shoes and someone gave you only one shoe
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