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
What methodology will be suitable to use for a doctoral research proposal thesis(The impact of persistent poverty on rural urban migration in Nigeria)?

analyze the trend of time series using semi-average method, method of least square regression and moving average method

what are the test for heteroscedasticity?

Provide a clear statement of the research topic and the underlying relationship that you are modeling. Identify the dependent variable and the independent variables (minimum of 3 i

Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and

let y denote the number of "heads" that occur when two coins are tossed

The following multiple regression results are part of a study of the demand for chicken in the USA. Q Calculates the quantity of chicken purchased per annum. PC and PB are the pric

My question is that when we use Impulse response function and how to use it. Is it used along with some other methodology. What is the meaning of graphs of IRF?

how might short and long term goals between a business and the government differ?