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Question 1. Discuss the practical application of Price elasticity and Income elasticity of demand
Question 2. Discuss profit maximizing model in detail
Question 3. Describe the objectives of pricing Policies
Question 4. Define Fiscal Policy and the instruments of Fiscal policy
Question 5. Explain the kinds and the basis of Price discrimination under monopoly
Question 6. Define the term Business Cycle and also explain the phases of business or trade cycle in brief
Diminishing Marginal Utility Diminishing marginal utility as well is to be held responsible for the rise in demand for a product when its price declines. When an individual pur
Lender of Last Resort The central bank also acts as the lender of last resort. Historically, this function developed out of the special position of the central banks. The centr
PHILLIPS CURVE The Phillips curve, named after A. W. Phillips, describes the relationship between unemployment and inflation. In 1958 Phillips, then professor a
The production function is Q= 20 K0.5 L0.5 Question: For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 unit
Features of Free Market System The features of a free market system are: (i) Ownership of Means of Production Individuals are free to own the means of producti
The only road connecting two populated islands is currently a freeway. During rush hour, there is congestion because of the heavy traffic. The marginal external cost from congestio
Transfer Payments Are any payments made to households by the government that are not made in return for the services of factors of production i.e. there is no Quid pro Quo. S
How does economic theory contribute to managerial decisions
How does economic theory contribute to managerial decisions?
The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu
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