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Q. What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?
Q. Explain law of demand with the help of a demand schedule and demand curve.
Q.Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
Q. "Cost function expresses the relationship between the cost and its determinants." Discuss this statement giving examples from any firm of your choice.
Q. "A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
Q. In any firm of your choice, try to find the effect of change in demand and change in supply on price and quantity of product.
Q. Write short notes on the following:
(a) Value Maximization
(b) Envelope Curve
(c) Peak Load Pricing
List three characteristics of an economists, a scientist and thee characteristics of an economist as a policy adviser.
Mr. Smith, has fallen behind on his work, he has asked you to help to make a letter for a local business or economic project.
What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other kinds of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.
Calculate the marginal and average variable product of each unit of labor input and calculate total, average total, average variable, and marginal costs.
What if a company employs ten workers and pays each $15 each hour. Further suppose that the MP of the 10th worker is five units of output
Suppose Amanda Herman finds that her total spending on compact dics remaing same after price of compact fall, other things equal.
A monopolist produces a single homogeneous good, which he sells in two marketplace between which discrimination is possible. His total cost function is;
Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the ..
Tropical Sweets is planning a project that will cost $70 million and will create expected cash flows of $30 a year for next 3-years. The cost of capital for this type of project is 10% and the risk-free rate is 6%.
Suppose you have just read the yearly report of a mutual fund. It boasted of a 26 percent return and advertised that it had beaten the market return last year by 3% points.
recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and cr..
Assume your firm's method of making decisions under risk is "making the best out of the worst possible outcome" What rule would you be forced to follow?
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