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Stock of durable goods on hand:
If the economy has enjoyed an extended period of prosperity, consumers may find themselves well supplied with various durable goods, e.g. cars, televisions, etc. all worth years of service. Hence, for sometime, many households will be out of the market for such products with the result that consumers will be willing to spend less and save more at each level of disposable income.
The level of disposable income:
The level of income is the basic determinant of how much households will consume.As households` income increase consumption expenditure increases and vice versa.
Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?
"Consider a market with n firms occupied in Bertrand competition. These firms have in common dissimilar marginal costs but any number of them may also have equivalent marginal cost
how to estimate a regression model that tests for higher ability individuals get a greater return from schooling
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon t $3.50 a gallon. Your usage of paint drops from 35 gallons to 20 gallons a month. 1. Co
Division of Labor The occupation or breaking down of jobs into simple and repetitive responsibilities.
Q. Explain the Post-Keynesian Economics? Post-Keynesian Economics: A modern heterodox school of economic thought that emphasizes more radical or non-neoclassical aspects of Joh
1. Isoquants are negatively sloped because if the quantity of factor 1 used in production is decreased then the quantity of the other factor must be increased to produce the s
The drawbacks of a mixed economy actually depend on how "mixed" it is. For instance, if it is mixed more towards a free-market, there is little regulation (some may see this as a g
what total cost function yields a U-shaped average total cost function
In this section, we ask you to write down a simple, formal, mathematical model. A small number of points will be awarded for an intuitive discussion of the problem, but most of the
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