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How do we evaluate the value of money?
Supply and demand verifies the value of a currency. If demand is high, the value rises, and vice versa. Factors that affect supply and demand contain the following: • Interest rates • Inflation • Balance of trade • Economic growth • Market speculators • Government budget deficits/surpluses
Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity
maximum profits will occur at the output level
Determine Optimal Price, Quantity and Economic Profit A firm has a demand function P = 200 – 5Q and cost function: AC=MC=10 and a potential entrant has a cost function: AC=MC
leat cost factor combination
a) Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20
Determine The Rule of Divergence in General Though even if attention is confined to non-communist-ruled economies there still has been huge divergence in relative output per w
argument against in favour of traditonel theory profit maximisation
Duopolist P=20-0.1Q where Q=QA+QB CA=QA CB=0.1QB2
Explain how monetary and fiscal policies can be used to alleviate (= lessen) dissimilar types of inflation. Define monetary and fiscal policies and show how these policies mig
What are the basic questions to be answered by economic institution? Four fundamental questions should be answered by any economic institution as: a. What goods and services
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