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Determine the Returns to ScaleUse the following production function and budget constraint to answer the questions below.
Q = L + K
1000 = 2L + 4Ka. Determine the returns to scale property of the production function.b. Determine the returns property to each factor.c. Determine the optimal quantities of labor and capitald. Determine the maximum quantity that can be produced.e. Determine the production relationship between labor and capital.
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Explain about the duality between direct and indirect utility. Duality between Direct and Indirect Utility: While seen how one can recover an indirect utility function by ob
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use of diagram how the price mechanism operates to allocate scarce resources. use examples to illustrate the answer.
why risk averse consumers pay premium for insurance to convert an uncertain outcome to a certain one?
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The prevention of major swings in economic activity can be handled most easily by the
List and describe the determinants of the price elasticity of demand and of supply.
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