Total differential of the tr , Econometrics

Assignment Help:

A  firm's  total  revenue (TR)  is  provided by  pq, where  p  is  price  and  q  is  quantity sold. Assume the  firm  is  initially  selling  1000  units  of  its  product at  a  price  of  100 euros. Then it enhances the price by 10% which results in a decreases of 5% in quantity sold.

(a) Use  the  total  differential  of  the TR  function  to  approximate  the  alter in total revenue.

(b) What percentage error results from using the differential compared with the true solution?   


Related Discussions:- Total differential of the tr

Role , what is role of education in economic development?

what is role of education in economic development?

#title.Structural Variance Auto Regression, Can you explain the basic intro...

Can you explain the basic introduction of this methodology?

Correlation and rank correlation, Explain the difference among the usual (p...

Explain the difference among the usual (product moment) correlation and rank correlation. In what situations is it more appropriate to use rank correlation?

Distributed lag model, how run ditributed lag model and how select lag leng...

how run ditributed lag model and how select lag length?

Concept of limit pricing theory, what meaning of limit pricing theory and i...

what meaning of limit pricing theory and its importance in industrial economics?

Give me liberty, The textbook states, “Prejudice by itself did not create A...

The textbook states, “Prejudice by itself did not create American slavery.” Examine the forces and events that led to slavery in North America, and the role that racial prejudice p

Quantile regression coefficients, Consider the study of the effect of publi...

Consider the study of the effect of public-sponsored training programs. As argued in public programs of training and employment are designed to improve participant's productive ski

Maximum likelihood procedure, A brief summary of the procedure of maximum l...

A brief summary of the procedure of maximum likelihood.

JGAUGUjgg3u3aii4tyl''UWY4Ktle.., hgquitwiywiy 6w tt555,jsiuouwjswjuhhurkhjs...

hgquitwiywiy 6w tt555,jsiuouwjswjuhhurkhjsrgvbb kjhg4tv jagwrj5rttruyyt hayvjafgrthbviuyhqakhjq kqhyo8yq ki8yihq jqkb qiki8yqi kiiiqgquestion..

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd