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Name the two actors in the basic neoclassical (or traditional microeconomic) model of economics, and identify the assumptions the model makes of these two actors.
Firms and households. Firms are suppose to maximize profits, and households are suppose to maximize their utility (or satisfaction).
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how do I explain the hicksian and slutsky theory of consumer behaviour in an examination
7.Consider the following production possibilities table: Option Y X A 0 100 B 80 80 C 120 50 D 140 10 a)Provide a measure of the approximate marginal opportunity cost of
Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.
Problem 1: (a) Differentiate between positive and negative externalities? Justify your answer using examples. (b) To what extent do government policies influence externali
Q. What do you meant by Deficit? Deficit: When a business, government or household spends more in a given period of time than they generate in income, they suffer a deficit. A
How does the indifference curve and budget line for a neutral good look like?
explain the relationship between scarcity,choice and opportunity cost
what do you meant by rent?
Determine the indirect utility function in brief. Indirect Utility Function: The ordinary utility function, u(x), is described over the consumption set X and thus to as the
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