Demand elastic- inelastic or unit elastic, Microeconomics

Questions

(i)   You are an industry analyst. Last year, the production cost of Microprocessor increased remarkably due to labor unionization. Nevertheless, the industry experienced a sharp increase in total revenue. How do you explain this? The demand did not change. You must use a diagram to answer this question.

(ii)  5% decrease in price caused only 1% increase in total revenue. Is demand elastic, inelastic, or unit elastic? Explain.

(iii)  Suppose one and only one worker is always required to operate one machine, and together they produce 100 units of output. Let's denote the number of worker by L and the number of Machine by K. What is the production function at this firm?

 

 

Posted Date: 2/15/2013 1:52:44 AM | Location : United States







Related Discussions:- Demand elastic- inelastic or unit elastic, Assignment Help, Ask Question on Demand elastic- inelastic or unit elastic, Get Answer, Expert's Help, Demand elastic- inelastic or unit elastic Discussions

Write discussion on Demand elastic- inelastic or unit elastic
Your posts are moderated
Related Questions
Marketing Economies: These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities

How do I do I use affsolve?

Problem: (a) Define money and briefly explain its core functions. (b) Explain the relationship between interest rate and price of bonds, illustrate using example. (c)

National income: The national income or product or expenditure provides a measure of total value at factor cost of final goods and services, which are available either fo

Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?

For each of the following scenarios, you use a SS & DD diagram to demonstrate the effect of a given shock on equilibrium price and quantity in specified competitive market. Explain


explain the theory of consumer behavior from the utility perspective

Learning curve implies:  1) The requirement of labor falls per unit.  2) Costs will be high at 1 st and then will fall with learning.  3) After eight years the labor requ

What is utility maximization according to consumer behavior? Consumer Behavior: Utility Maximization A foundational hypothesis onto individual behavior within modern econ