Total differential of the tr , Econometrics

A  firm's  total  revenue (TR)  is  provided by  pq, where  p  is  price  and  q  is  quantity sold. Assume the  firm  is  initially  selling  1000  units  of  its  product at  a  price  of  100 euros. Then it enhances the price by 10% which results in a decreases of 5% in quantity sold.

(a) Use  the  total  differential  of  the TR  function  to  approximate  the  alter in total revenue.

(b) What percentage error results from using the differential compared with the true solution?   

Posted Date: 3/25/2013 5:23:32 AM | Location : United States







Related Discussions:- Total differential of the tr , Assignment Help, Ask Question on Total differential of the tr , Get Answer, Expert's Help, Total differential of the tr Discussions

Write discussion on Total differential of the tr
Your posts are moderated
Related Questions
cost function; expenditure=B1+B2N+B3N+U EXP=17099+1.60N-1.2Q regration sum of square=8 qutinos 1 explain inter prtation

Factor that affect the volume of production

Costs.  a.  Complete the following table.  Total Product (Q) Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost

The attached Eviews results are for a model who has a professional career (dependent variable = pro (1 if respondent has a professional career, 0 otherwise). The data is the 1979 c

The  firm  is  considering  manufacturing  a  second  product  in  its  factory alongside the first. The demand functions for the two products are: Q d1 =180 - 4P 1 Q d2 =90

Discuss the descriptive statistics of total government expenditures and per capita government expenditures. Plot their histograms and comment.

Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) = 0.

Give the mathematical formula of calculate the slope of a line?

Greenstone Coffee is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by 15% and the company wishe

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9