About in class are the technical rate of substitution

Assignment Help Business Economics

Reference no: EM131379966

Two of the most important concepts we’ve talked about in class are the technical rate of substitution between two inputs and the ratio of the price of those inputs. Explain, briefly, what each of these concepts represent in terms of tradeoffs, and why they are often equal when then firm is making its cost-minimizing input choice.

Reference no: EM131379966

Questions Cloud

What would be your most difficult tech to live without : After watching both videos based on no tech...Could you do this? Could you do it longer? Did he take it too far, not far enough? What would be your most difficult tech to live without?

Solve for the marginal utility of both wabbits and duck : Elmer Fudd likes to hunt “wabbits” but also likes to hunt duck. His utility function can be expressed as U(W,D)= 1/(-(2W^2+D^2 )^2 ). Solve for the marginal utility of both “wabbits” and duck. Write the tangency condition, what can you tell me about ..

What prices will monopolist set when it can discriminate : Suppose there is a movie monopolist selling to students, adults, and seniors. The marginal cost of tickets is fixed at $7.00. What prices will a monopolist set when it can discriminate? How much profit will the firm make? Suppose the firm would rathe..

Resulting tangency condition under this price paradigm : Suppose Danielle consumes pancakes and waffles. Her utility function can be expressed as U(P,W)=10P^.75 W^.5. Furthermore, suppose the price of pancakes is $4.00 and the price of waffles is $2.50. Define Danielle’s marginal rate of substitution for P..

About in class are the technical rate of substitution : Two of the most important concepts we’ve talked about in class are the technical rate of substitution between two inputs and the ratio of the price of those inputs. Explain, briefly, what each of these concepts represent in terms of tradeoffs, and wh..

About the size of the current federal debt : In thinking about the size of the current federal debt and deficit relative to the current level of GDP, explain how you think this information affects peoples' decisions

Use basic supply and demand framework to predict : Assume your marginal rate of substitution between goods 1 and 2 is −1. If your consumption choice is optimal, A generic good is taxed. Who bears more of the burden of the tax, producers or consumers? (a) It depends on whether supply or demand is more..

Explain price and output determinations for firms : Describe and explain price and output determinations for firms. How does the change from the short run to the long run for a Monopolistic Competitor? What effect does product differentiation have on the firms approach to price and advertising?

The wrong side of globalization : "The Wrong Side of Globalization" by the Nobel Prize winning economist, Joseph Stiglitz - originally from Gary, Indiana. How does he characterize trade agreements?

User Account

All Pages