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Advertising expenditure must remain the same
If advertising expenditure of a firm increases, consumers may be tempted to buy more of its product. Hence the advertising expenditure on the good under consideration is taken to be constant. Desire of a person to buy a commodity isn't his demand. He should possess adequate resources and should be willing to spend his resources to buy the commodity. Moreover the quantity demanded has always a reference to 'a price' and 'a unity of time'.
STABEX The STABEX scheme was designed to stabilize earnings from exports of the African, Caribbean and Pacific (ACP) countries to the Community. It covered seventeen agricult
1. The price of a U. S. produced hammer is $5. The exchange rate with Malaysia is 3 Ringgit/1$. What is the current price of the hammer in Malaysia? (Assume no transportation cost.
A toy manufacturer makes output according to the production function: where n is the number of workers employed by the firm, O is a technological parameter and g the worker
In the short-run the firm can't modify or change overhead factors like equipment, plant and scale of its organisation. In the short-run output can be decreased or increased by chan
A medical insurance company offers its salespeople the following compensation scheme: each worker takes a fixed salary and, in addition to that, a commission depending on the volu
What is producer surplus? “The more the competition among the sellers, the less the producer surplus enjoyed by the producers” – do you agree with the statement. Justify your answe
The gap between theory and practise and the role of managerial economics: We have noted above that application of theories to the process of business decision making contributes a
Arguments against protectionism Most of the arguments for protectionism may be met with counter arguments, but underlying the economic arguments as opposed to the social, mo
critically analyze the firm''s theory of profit maxmization
Question: (a) The regression results for the quantity demanded of good X is given by ln Q X = 1220 - 9.5 ln P X - 2.21 ln P Y + 1.01 ln M t values (5.3) (-5.1
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