CONSUMER CHOICE 5.0: Introduction In this unit‚ we shall concentrates on a consumer by looking at the behaviour of a consumer in exclusion from both other consumers and producers. Recall that a consumer is one who uses goods and services to satisfy her wants. She is assumed to be rational meaning that he aims at utility maximization; given her income and commodity prices. There are several theories that have been developed to try and explain the behaviour of a consumer. However‚ they can be
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to Economic Written Report 6.1 a) Consider a monopoly facing the following demand and MC curves: Demand: P = 12 – 0.002 Q MC: MC = 3 + 0.001 Q (i) Calculate the profit maximizing output of this monopoly. Ans: The output level of monopoly to maximize profit is MR=MC. As‚ P=a-bQ‚ the MR curve will be MR=a-2bQ‚ So‚ 12-2(0.002Q) = 3+0.001Q 12-0.004Q = 3+0.001Q 9 = 0.005Q Q = 1800 Monopoly Price
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Lesson - 1 Business Economics- Meaning‚ Nature‚ Scope and significance Introduction and meaning : (Author : Dr. M.S. Khanchi) Business Economics‚ also called Managerial Economics‚ is the application of economic theory and methodology to business. Business involves decision-making. Decision making means the process of selecting one out of two or more alternative courses of action. The question of choice arises because the basic resources such as capital‚ land‚ labour and management are limited and
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LEARNING CURVE – FACT OR FICTION? (Author unknown ) The term "the learning curve" has a popular‚ well-known meaning in American culture. In consideration of how and when you start to examine the way that term is used‚ most people discover that the primary and perceived meaning of the term really doesn’t make any sense.If the curve is drawn on a chart which tracks resulting knowledge against time spent learning‚ it might look like the Tetris© (a popular logic game) graph here to the right. By
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Chapter 6: Interest Rates The difficulty of these questions as seen by students will depend on (1) what was discussed in class and (2) how long students have to answer the questions. If time is not an issue‚ then many of the questions could be classified as EASY‚ but under exam conditions with time pressure‚ many might be regarded as being CHALLENGING. So‚ consider the amount of time students have when selecting questions for an exam. Note that there is some overlap between the True/False and the
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INDEX TOPIC PAGE NO 1 Abstract 3 2 Current status of Indian Bond Market 3 3 All about Yield curve 5 4 Behavior of bond yields- Case by Case basis 7 5 Data Calculations and Conclusions 11 6 Literature Review 15 7 References 17 Abstract This paper examines the determinants of the bond yields in India using daily data from Feb 20‚ 2013 through March 30‚ 2014‚ to be precise 300 working days. The
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Scale Meaning An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that show all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity. Therefore‚ an isoquant represents a constant quantity of output. The isoquant curve is also known as an “Equal Product Curve” or “Production Indifference Curve” or Iso-Product Curve.” The concept of isoquants can be easily explained with the help of the table given
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diagram devised by F. Y. Edgeworth‚ in the form of a box which plots the indifference curves of two individuals or firms relative to the consumption or production of two goods. The contract curve plotted shows the points where the utility to the two individuals or firms is equal. analytical tool for determining the contract curve used in welfare economics. It is caused by the combination of the indifference curve systems of two exchange partners For this‚ the two systems must be arranged so that
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number of different approaches to the pricing of fixed-income products. The simplest approach is to price a product of the term structure of interest rates which also known as yield curve. This method is effective for simple contracts‚ for instance bonds. Hiriyappa (2008).‚ This paper develops a technique of fitting a yield curve called “the
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using the learning curve. In the last section‚ the limitation of learning curve will also be discussed. Part A (i) Introduction for learning curve theory Learning curve is a concept that measuring the experience of a skill gained by an organization‚ and how fast it can be master. As the experience gained‚ the workers performance will be improve‚ time taken will be decrease‚ and therefore the productivity will grow up. Also‚ according to Steven (2010)‚ learning curve is a significant
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